Paying Suppliers in China: A Comprehensive Guide

In today’s global marketplace, businesses increasingly rely on Chinese suppliers for their products. Taking into account the importance of effective and secure payment methods, we created a guide that covers the common payment options, key considerations, and recent trade data relevant to businesses working with Chinese suppliers.

Trade Volume and UK Exports to China

Before diving into payment methods, let’s take a look at the scale of trade between the UK and China. Despite the decrease, China was the UK’s 5th largest trading partner in the four quarters to the end of Q3 2024 accounting for 5.2% of total UK trade. Total UK imports from China amounted to £57.0 billion in the four quarters to the end of Q3 2024[1].

Payment Structure with Chinese Suppliers

A common approach when working with Chinese suppliers is:

• 30% deposit before production starts.
• 70% balance due upon order completion.

Key Considerations When Paying Chinese Suppliers

✅ Conduct Due Diligence: Verify your supplier’s reputation and credentials before making any payments.

✅ Choose the Right Currency: Paying in Chinese Yuan (CNY) can sometimes reduce costs compared to USD transactions.

✅ Avoid Personal Accounts: Always transfer funds to an official business account to prevent fraud.

✅ Stay Updated on Regulations: Chinese international payment regulations can change; staying informed helps avoid disruptions.

✅ Consider Intermediaries: Sourcing agencies can manage payments and logistics on your behalf, simplifying the process.

Common Payment Methods

1. Bank transfers, also known as wire transfers, international payments, or cross-border payments, are widely used for transferring funds to Chinese suppliers. While they offer a secure and direct way to transfer funds, businesses should consider:

• Processing times.
• Bank fees that can add up per transaction.
• Generally unfavourable exchange rates provided by banks.

To optimise wire transfers, consider negotiating lower transfer fees, especially for bulk transactions, as many banks and financial institutions offer discounts based on transaction volume. Additionally, ensure that contracts clearly specify who is responsible for covering the transaction costs to avoid any misunderstandings or disputes.

2. Escrow Services

Escrow services provide additional security by holding funds in a third-party account until the goods are received. Alibaba Trade Assurance is a popular escrow service that offers buyer protection when purchasing through Alibaba.

3. Specialised Payment Providers

Companies such as PayPal and Wise offer efficient cross-border payment solutions. These services often provide better exchange rates and faster processing times than traditional banks.

Paying Suppliers in China Using Amaiz Business Account

Amaiz offers a streamlined way to pay Chinese suppliers directly from your business account. To initiate the payment, follow these steps:

• Log in to your Amaiz business account.
• Click the ‘Transfer’ button on the main page.
• In the transfer window, select your EUR account.
• Choose ‘International transfer’ as the transfer type.
• Select China as the destination country.
• Input the transfer amount.
• Choose the preferred currency (CNY or USD).
• Review the exchange rate, fees, and final payment amount.

With Amaiz’s international transfer feature, businesses can make payments to Chinese suppliers more efficiently, potentially cutting costs and accessing better exchange rates than those typically offered by traditional banks.

Ready to streamline your payments to overseas suppliers? Contact us today and see how Amaiz can support your business. Visit www.amaiz.com to apply for a business account.

1. Department for Business and Trade “Trade and Investment Factsheets”  - [https://assets.publishing.service.gov.uk/media/67b736c40495029f3e1c6ab3/china-trade-and-investment-factsheet-2025-02-21.pdf]

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