Chinese Banks: How Business Accounts Work in Practice
- Roman Verzin
- May 7
- 5 min read
Updated: Jul 9
Opening a bank account in China used to be simple.
Now it’s one of the most complicated parts of your setup — especially if you’re from a “sensitive” country.
How it works in theory
You open a Chinese company.
You bring the documents to the bank.
They check everything and open the account.
Simple? Not anymore.
How it works in real life
Most banks will:
Send someone to inspect your real office
Ask the legal representative to appear in person
Delay the process if your structure looks “sensitive” — usually with vague comments like “we need to check with HQ”
In China, “sensitive” means the owner or director is from a high-risk country.
This includes:
Russia, Ukraine, Kazakhstan, Belarus, Armenia, Tajikistan, Uzbekistan
Iran, Syria, Lebanon, Palestine, Israel, UAE, Sudan, Nigeria — and many others
That was our story too.
In 2018, our Chinese company opened accounts at major banks like ICBC and Bank of China — with no issues.
By 2022, only small regional banks would even consider us.
By 2023, international payments were quietly blocked, with no formal rejection.
In 2024, most Chinese banks stopped onboarding Russian directors altogether — unless a trusted Chinese partner backed the case.
A few SDN-listed banks still accept “sensitive” clients. But those come with major limitations — more on that below.
Why banking became a bottleneck
Some founders wait for months to open a business account.
Others never get approved.
So don’t assume things will work “like usual.”
Check the bank situation before you register your company.
What accounts can you open?
A Chinese company can have:
✅ CNY basic account
Used for tax payments, salaries, local expenses. Mandatory for operations in China.
✅ Foreign currency account
Used for USD, EUR, etc. Requires additional approval. Used only for international payments.
Once both accounts are active, you can send and receive funds globally.
But in China, every single international transaction must be explained — with full documentation.
What do banks check?
Does your business activity match the payment purpose?
Do invoice, contract, and customs data align?
Is the counterparty from a “sensitive” jurisdiction?
If anything seems off, the bank may block the transfer — silently.
And this is cultural.
Chinese banks rarely say “no” directly. Instead, they say:
“It’s difficult right now”
“We’re still checking”
“Please wait…”
Then — silence.
No official rejection. No written reason.
You’ll need a third party to get the real answer — privately.
Outgoing transfers are harder than incoming
If you’re paying a foreign supplier, you’ll need:
Invoice and contract
Customs declaration
Possibly payroll records and tax filings — especially for large sums
Paying for services abroad is even harder.
Most service payments to foreign providers require extra approval — and are rarely approved for small companies.
That’s why many Chinese founders use a Hong Kong company to pay contractors overseas.
If your business model depends on international transfers — plan for Hong Kong.
Your client’s country can be a problem too
Even if your business is clean, the source of the payment matters.
Many banks now:
Reject payments from UAE
Block transfers from offshore companies in BVI, Belize, Seychelles
To work around this, many Chinese companies create a Hong Kong entity — just to receive payments.
If your clients are in “tricky” countries:
Ask the bank if they accept payments from that country
Test small transfers first
Don’t assume “if it’s legal, it’s fine” — in China, internal policy matters more than written law
Not all banks are equal
Some local banks are easier to open with.
But their policies change without notice.
We’ve seen this firsthand.
One of our accounts worked well for 2 months — then suddenly couldn’t receive payments from Hong Kong.
Another bank stopped all international transfers, quietly.
Offline, a manager told us:
“Head office asked us to freeze accounts with Russian directors — no matter the activity.”
What about big banks like ICBC and Bank of China?
We used to advise clients to avoid them because of outdated systems.
That’s still true — their online platforms are behind.
But those who got accounts there — still use them.
Big banks have better compliance teams. So once you’re approved, they’re more stable long-term.
Lesson:
If you can open with a major Chinese bank — do it.
Keep 2–3 active accounts if possible.
Diversify transactions between them.
What about SDN-listed Chinese banks?
Some small banks under international sanctions still open accounts for high-risk founders.
But these accounts come with limits:
No access to USD or EUR
Restrictions on other currencies
Only useful for China–Russia or China–Iran trade, or for domestic payments
Use them only if you have no other option.
They won’t support global growth — and could lead to problems later.
Face verification is now mandatory
Since 2023, most banks require in-person verification of the legal rep, including face scan.
This applies when:
Opening an account
Changing directors or company details
Activating online banking
If your legal rep is foreign, they must go in person — usually to the branch where the company is registered.
Make sure your rep can travel to China when needed.
Online banking in China
Yes, Chinese banks offer online platforms. But:
Chinese version is more advanced than English
Interfaces are outdated
Physical USB tokens are required — often two or more
Most tokens only work on Windows, in specific browsers
You can assign tokens to trusted employees — but someone with Chinese skills is essential.
What about offshore accounts?
Technically, Chinese companies can open offshore accounts in other countries.
But they require special approval — and it’s extremely hard to get.
So if you need global payments, the practical solution is:
Open a company in Hong Kong or Singapore.
Working with individual clients in China?
Most payments happen via QR code — through:
Alipay
WeChat Pay
You can activate them after your Chinese bank account is ready.
Final thoughts
Banking in China is no longer “easy.”
But it’s still possible — if you prepare.
✅ Get all documents ready
✅ Be ready to travel to China
✅ Know your options if you’re from a sensitive country
✅ Learn how to read between the lines
✅ Choose banks carefully
✅ Use QR payments for local clients
And above all — make sure your payment setup matches your business model.
United Suppliers Group helps founders from complex countries open real, working structures in China.
That includes full support with bank accounts — from finding the right bank to preparing documents and navigating compliance issues.
In the next article, we’ll cover how Chinese taxes work — and what you should plan for when estimating your real business costs.
Need help planning your China setup? Contact our team for a consultation.
