Getting Paid from China -- Is there a dollar limit?

Home | China Law Blog | China’s $50,000 Yearly Funds Transfer Limit Clients often ask our China lawyers whether their buyers in China are telling the truth when they claim not to be able to pay them more than $50,000 in one year. The answer is both yes and no. China controls inbound and outbound foreign exchange flows. If a Chinese citizen or company needs to make an overseas payment it is required to purchase the foreign funds with RMB from a bank qualified to do foreign exchange business. Most banks in China are qualified to do foreign exchange business. When converting RMB to a foreign currency at a Forex Bank, the bank is required to review whether the outbound capital is for investment or for regular payment. Outbound capital investment refers to overseas equity investment and is strictly restricted. Outbound regular payments are permitted, including those for overseas tours, training, relatives visitation, business negotiations, meetings, service, and labor. Chinese citizens and companies can convert and freely remit up to USD $50,000 equivalent per year. Conversions exceeding this USD$50,000 quota are still possible, but the citizen or company cannot complete it at a bank counter freely; they must apply to the local State Administration of Foreign Exchange (SAFE) for written approval. Chinese banks will not let the extra conversion go without seeing SAFE’s approval letter. To secure approval to exceed the USD$50,000 limitation in yearly payments, the Chinese citizen or company must submit documents verifying the underlying transaction. The application documents mainly include: (1) the contract signed between the Chinese party and the foreign company; (2) notarization and legalization of the engagement letter/ contract; (3) tax return certificates of the payee (theoretically the foreign company needs to pay Chinese withholding tax for the revenue gained from China); (4) and a request for payment. There you go. . . . Check Out Our China Law Services Share Twitter Facebook LinkedIn E-mail Comment Dan Harris Dan Harris is a founding member of Harris Sliwoski, an international law firm where he mostly represents companies doing business in emerging market countries. Most of his time is spent helping American and European companies navigate foreign countries by working with the international lawyers at his firm in setting up companies overseas (WFOEs, Subsidiaries, Rep Offices and Joint Ventures), drafting international contracts, protecting IP, and overseeing M&A transactions. In addition, Dan writes and speaks extensively on international law, with a focus on protecting foreign businesses in their overseas operations. He is also a prolific and widely-followed blogger, writing as the co-author of the award-winning China Law Blog. Harris Sliwoski Attorney Read more posts [email protected] Read More Legal News Related Posts September 15, 2026 Your AI-Drafted China Contract Says It Needs a Lawyer. Listen to It. September 11, 2026 Forensic Accountants in China Business Litigation: How True Numbers Can Tell the Wrong Story September 4, 2026 China NNN Agreement or Trademark Registration? You Usually Need Both September 1, 2026 AI Didn't Replace Lawyers. It Gave Us the 48-Page Contract. August 27, 2026 Do I Need a China NNN Agreement or a China Manufacturing Agreement? Usually Both. August 26, 2026 China’s New Overseas Investment Rules: Can Your Chinese Investor Actually Get the Money Out? August 24, 2026 International IP Protection for Startups: What to Protect and Where August 19, 2026 The Documents Are the International Deal August 19, 2026 China Supplier Fraud in Yiwu: Why We Recommended the Police, Not a Lawsuit August 17, 2026 China Trademark Registration: Why U.S. Companies Need More Than a Filing Agent August 10, 2026 Buying Expensive Equipment from China: Seven Questions to Answer Before You Pay August 7, 2026 DDP Shipping Risks: What Boise Cascade’s Guilty Plea Means for U.S. Buyers August 6, 2026 Protecting Your Artwork Internationally: What Artists Need to Do Before the Work Travels August 5, 2026 Your China Employee Signed the Vacation Policy. You Can Still Lose. July 29, 2026 The RedNote Contract Lesson for Companies Doing Business in China Leave a comment Cancel reply