Dec 14, 2022 9 min read lang-en

Transferring Money From Japan to Your Family and Friends in China? Here are Recommended International Money Transfer Services.

Japan and China are two countries in Asia that are very close geographically. As such, many Japanese people visit China for various reasons, including leisure, business, and study abroad.

The need to send money to China may not be for a personal reason as well; many people have come across the need to send money when their family or friends are staying in China, such as when:

Sending some money for living expenses to a spouse on a business trip in China
Providing financial support for a family member studying in a school in China
Sending money to a friend in China as a wedding gift
Visiting a friend in China and sending money ahead for travel and living expenses

It is well-advised for those who are planning on sending money to China, whether now or in the future, to understand the basics of international money transfers.

In this article, we will discuss some recommended international money transfer methods and the basics of sending money to China.

Institutions Involved in International Money Transfers to China

First, let’s take a look at the institutions involved in international money transfers to China to get a better understanding of how it works.

An international money transfer to China usually involves the steps shown below.

The sender requests a money transfer at a Japanese financial institution that handles international money transfers.
Upon receiving the request, the financial institution exchanges the money into the local currency of the destination country.
The transaction is processed through a relay bank and then to the receiving bank (This step is relevant only for bank transfers).
The recipient receives the transferred money in the designated bank account.

There is a clear difference between banks and international money transfer services in terms of the time needed to complete a transaction.

Sending money to China using a bank takes about a week from the time of request to the completion of the transfer, whereas using a money transfer service often takes only one or two days.

If speed is a priority, we recommend using an international money transfer service instead of a bank.

Fees Charged When Transferring Money to China

When sending money internationally to China, there are certain fees for both bank and international money transfer service procedures.

The types of these fees will vary depending on the financial institution and service. In this section, we will look at the fees incurred in each step of both bank and international money transfer services.

Fees charged with a bank

Remittance fee
Receiving fee
Relay bank fee
Foreign exchange fee

Fees charged with an international money transfer service

Remittance fee
Foreign exchange fee (dependent on the service)

It is clear that more fees are charged when transferring through a bank.

This is because bank transfers involve relay banks before delivering the currency to the receiving bank. Depending on the bank and the route taken, multple relay banks may be involved in the procedure. Do be aware that each relay bank will charge its own fee, so the more relay banks involved in a transaction, the more fees the sender will have to pay.

Fee	Point
Remittance fee	Fees paid to the financial institution or service that processes the transfer
Receiving fee	Fees paid to the bank receiving the money
Relay bank fee(s)	Fees paid to relay banks involved in transactions with a bank. Charged each time the transfer passes through a relay bank.
Foreign exchange fee	Fee included in the exchange rate which are often added on top of the actual exchange rate by financial institutions and services. Some services do use the actual rate (mid-market rate) with no commission surcharge.

International Money Transfer Regulations in China

China has regulations on international money transfers, so it is essential to learn about them in advance.

Currently, China's foreign currency control regulations require that a tax preparation report be submitted to the tax authorities for remittances of over $50,000 per transaction. After the report is received, a seal must be affixed and submitted with all other necessary documents.

The regulations also stipulates that recipients in China cannot transact international money transfers in excess of $50,000 per year. If the amount exceeds the equivalent of $50,000, the system is designed so that the transaction will be canceled after deducting a fee.

This is not a problem as long as the amount being transferred is within the stipulated range. However, senders should be careful and ensure that the recipient has not already received more than the equivalent of $50,000 before performing a transaction.

There is an exception to the $50,000 limit. If the recipient in China is a non-Chinese and the purpose of the transfer is salary or real estate income payment earned in China, the recipient is allowed to convert the income into foreign currency even if it exceeds this limit.

Other concerns may include insufficient provision of details, such as the purpose of the transfer. In this case, the transfer may take longer than expected or be returned to the sender. Senders have to ensure that all information is complete before beginning the transaction process.

Reference: Q&A on remittance of money outside China by individuals

Reference: Foreign Exchange Control Regulations and Taxation in China | PwC Japan Group

Reference: Renminbi Forward Remittance

Recommended Methods of Money Transfers to China: Bank

In this section, we will look into the recommended methods of international money transfers to China. Let us start with banks.

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation (SMBC) provides SMBC Direct, an internet banking system that allows international money transfers 24/7. (*Procedures are not available on Sundays from 9:00 p.m. to 7:00 a.m. due to maintenance.)

SMBC is a megabank in Japan trusted by a very large number of local users, which can provide peace of mind when utilizing their services.

In addition, if the recipient of a transfer is Japanese, there is a high chance that they will have an account with SMBC, making it an easy choice from the recipient as well.

Fees for international money transfers to China

Remittance fee: 3,000 yen

*Transfers to other banks instead of their overseas branches are charged 3,500 yen

Relay bank fee: 2,500 yen

Receiving fee: Set by the receiving bank

Duration

Approx. 7 business days

https://www.smbc.co.jp/kojin/otetsuduki/sonota/kaigai/

Rakuten Bank

All international money transfer procedures to China via Rakuten Bank are handled through Internet banking. Rakuten Bank allows users to set up an account easily online, an attractive feature for many younger generation users.

Their international money transfer procedures are carried out over the Internet, and are very popular for their low fees and speedy transactions compared to those of other banks.

Fees for international money transfers to China

Remittance fee: 750 yen

Relay bank fee: 1,000 yen

Receiving fee: Set by the receiving bank

Duration

Approx. 1 to 3 business days

https://www.rakuten-bank.co.jp/geo/remittance/charge/

Recommended Methods of Money Transfers to China: Online-Based Services

Online-based money transfer services are growing rapidly in popularity in recent years.

In this section, we will look at some popular international money transfer services and discuss why such services have become popular.

Paypal

Paypal is a service that allows online payments at more than 2,400 commercial stores worldwide and money transfers between individuals. Paypal also offers international money transfers to 190 countries in 23 currencies.

Those who already use Paypal for online payments and shopping will find it an easy option as the same smartphone app can be used to transfer money overseas.

Unfortunately, Paypal does not currently support international money transfers in Chinese yuan, which means it cannot be used to send money to China. Therefore, this service is not an option if transferring money to China.

https://www.paypal.com/jp/webapps/mpp/personal/send-money-overseas

https://www.paypal.com/jp/webapps/mpp/paypal-fees

Wise

Wise is an international money transfer service based in the United Kingdom. While there are a variety of international money transfer services, Wise is known for its particularly speedy transfers and low fees. Wise currently supports currency exchange into 53 currencies and money transfers to 80 countries, making it an increasingly popular service that is accessible to many users.

Wise also has a functional smartphone app, so procedures can be completed using a smartphone.

Fees for international money transfers to China	Remittance fee: A flat fee of 120 yen + 0.9% of the amount that's converted
Duration	Same day of procedure to about 1 business day

Comparison of Money Transfer Methods to China

So, how much and how long will it take to actually send money to China?

The table below compares the fees and time of each service when sending 500,000 yen.

Service	Sumitomo Mitsui Banking Corporation	Rakuten Bank	Wise
Fees	Remittance fee: 3,000 yen Relay bank feee: 2,500 yen Receiving fee: Set by the receiving bank	Remittance fee: 750 yen Relay bank fee: 1,000 yen Receiving fee: Fee determined by the receiving bank	Remittance fee: A flat fee of 120 yen + 0.9% of the amount that's converted
Duration	Approx. 7 business days	Approx. 1 to 3 business days	Approx. the same day to the next business day
Amount received with a 500,000 yen transfer	24,004 CNY Additional lifting fees and currency conversion admin fees may be incurred. The amount shown is for an e-Trade transaction.	23,696 CNY *May change depending on exchange rate fluctuations	24,180 CNY

Curfex is the Recommended Choice for Sending Money to Family and Friends in China!

Now that we have looked at several methods of sending money to China, it is clear that choosing a service with high speed and low fees is important for many users.

Now, let us take a look at Curfex, an international money transfer service that allows money transfers to China.

Curfex is currently attracting a great deal of attention for its speed and low fees, among the best in the industry, where transactions can be completed in the same day or the next business day.

On top of that, the most attractive feature of Curfex is that it has no currency exchange fees, thus removing a fluctuating and stressful component of transfers with other services.

Curfex’s fees are stable because it uses the "mid-market rate," in contrast to most other services that use their own rates which adds fees on top of the actual exchange rate.

Fees for international money transfers to China

Remittance fee: Free with first transfer

1% of remittance amount after the second transfer

*Flat rate, no fluctuation

Duration

Approx. the same day to the next business day

The table below is a simulation of a remittance of 500,000 yen to China via Curfex, with an amount of 24,505 CNY received.

Service	Sumitomo Mitsui Banking Corporation	Rakuten Bank	Wise.	Curfex
Fees	Remittance fee: 3,000 yen Relay bank feee: 2,500 yen Receiving fee: Set by the receiving bank	Remittance fee: 750 yen Relay bank fee: 1,000 yen Receiving fee: Fee determined by the receiving bank	Remittance fee: A flat fee of 120 yen + 0.9% of the amount that's converted	Remittance fee: Free with first transfer *Flat rate, no fluctuation
Duration	Approx. 7 business days	Approx. 1 to 3 business days	Approx. the same day to the next business day	Approx. the same day to the next business day
Amount received with a 500,000 yen transfer	24,004 CNY Additional lifting fees and currency conversion admin fees may be incurred. The amount shown is for an e-Trade transaction.	23,696 CNY *May change depending on exchange rate fluctuations	24,180 CNY	24,505 CNY

It can be seen that Curfex offers a faster and more affordable international money transfer service when compared to other services previously discussed in the article.

(The cost is calculated with the mid-market rate as of 11/5/2022.)

Currently, Curfex is offering a fee waiver campaign for the first transfer.

With the transfer fee waived and no added fees, Curfex is a highly economical and recommended way for international money transfers!

Our commitment to delivering exceptional service sets us apart from the competition and ensures that our customers have a positive experience every time they use our service. Whether you have a question about fees, exchange rates, or anything else related to your money transfer, our team is here to help. We are dedicated to making your money transfer process as smooth and stress-free as possible, and we are always happy to assist with any concerns or issues you may have. So if you're looking for a reliable and customer-focused money transfer service, look no further than us!

If you plan to send money overseas, including to China, don't miss this chance to sign up with Curfex and save some money!

https://remit.curfex.com/en

References：
https://wise.com/jp/blog/china-overseas-remittance-rules
https://help.rakuten-bank.net/faq/show/6905?category_id=211&site_domain=business
https://www.digima-japan.com/knowhow/china/16097.php
https://exiap.jp/international-money-transfers/send-money-to-china