BEIJING, February 20 (TMTPOST)—Amid the ongoing Russia-Ukraine conflict, foreign trade enterprises in China are faced with mounting difficulties in cross-border payments.
Since February, Chinese commercial banks have tightened the examination of receiving remittances involving Russia, and many foreign trade businesses cannot collect money as usual because they do not meet the requirements of receiving banks or intermediary banks. State-owned big banks, joint-stock banks and small and medium-sized banks are all involved.
"(Whether we can receive payments) mainly depends on the transaction documents; it varies in many different situations. The Renminbi-denominated cross-border transactions have always had corresponding review requirements, which are becoming more stringent," said a staffer from the local International Business Department of Industrial and Commercial Bank of China (ICBC) in Suzhou.
Since February of this year, the scrutiny of receiving remittances related to Russia has become stricter. The key to whether it can be received depends on the transacted goods and the ultimate consignee, which require a rigorous due diligence process."
The tightened scrutiny is affecting the ability to receive funds, and some banks are even issuing urgent notices to foreign trade customers, as seen in the case of a state-owned bank branch in Zhaoqing city, southern China’s Guangdong province. The bank notified foreign trade customers before the Spring Festival that it would no longer process foreign trade transactions related to Russia due to heightened risks.
This situation is not limited to a single bank or region. The impact has spread to various provinces, including Jiangsu, Hunan, Shanghai, and Beijing, affecting foreign traders who have received relevant notices or have been impacted.
While Russia-related transactions are being impeded, foreign trade orders and remittances from other countries are handled in a case-by-case manner. Customer service representatives from several state-owned banks mentioned that there are currently no specific restrictions on foreign trade remittances for any particular region. However, they advise consulting the opening bank for specific details on remittances from Russia.
In 2023, China's cross-border Renminbi receipts and payments totaled 52.3 trillion yuan, a year-on-year increase of 24%, accounting for 58% of the total cross-border receipts and payments in the same period for both domestic and foreign currencies.
The cross-border Renminbi receipts and payments under the current account totaled 14 trillion yuan, a year-on-year increase of 33%, and under the capital account, Renminbi receipts and payments amounted to 38.3 trillion yuan, a year-on-year increase of 21%, according to data from People’s Bank of China.
(1 yuan equals US$ 0.14)
特别声明:以上内容(如有图片或视频亦包括在内)为自媒体平台“网易号”用户上传并发布,本平台仅提供信息存储服务。
Notice: The content above (including the pictures and videos if any) is uploaded and posted by a user of NetEase Hao, which is a social media platform and only provides information storage services.