Q for Globetrotter/other China residents

[Rock]

I asked this to Globetrotter before in another post but maybe he missed it.

Are foreign teachers and other foreign residents in China now allowed to open local RMB bank accounts? If so, what rate of interest do they pay and what, if any, are the limits and restrictions? Is the account tied to a work or residency permit? Can it be maintained once your work/residency permit expires. What are the limits and restrictions for you on inward and outward remittances?

Please share what you know about this topic. Thanks.

[globetrotter]

1) Yes.
2) I don't earn interest and I also pay no fees. Compare that to BOA who charge me $10 a month for a checking account with less than $2,500 in it.
3) I can look at local Credit Coop interest rates tomorrow and post them
4) Restrictions are minimal. China does not want anyone to hear that they are seizing the bank accounts of foreign nationals. Corp postings to here would stop overnight.
5) I got my account with my invite work letter within 90 minutes of arriving in town. Mobile phone as fast, too. Those were the very first two things I did once I got off of the train.

If you don't have the above letter and contacts then favors can always be called in. It helps to know people here. Laws are bent, rules ignored, doors open.

Show up just with your money and the only thing that happens is you spend your money, just like you expect.

6) $50,000 USD outflow per year. That's US Dollars, not CNY. I can send a few thousand RMB and it's no issue. I know people who sold their Shanghai condo, made $500k profit and wired it back to the USA. Wires clear in 2 days or less. Again, they know that people here need to send money back home.

China is the world's 2nd largest economy. They aren't stupid. You can move money around freely.

[Rock]

1) Yes.
2) I don't earn interest and I also pay no fees. Compare that to BOA who charge me $10 a month for a checking account with less than $2,500 in it.
3) I can look at local Credit Coop interest rates tomorrow and post them
4) Restrictions are minimal. China does not want anyone to hear that they are seizing the bank accounts of foreign nationals. Corp postings to here would stop overnight.
5) I got my account with my invite work letter within 90 minutes of arriving in town. Mobile phone as fast, too. Those were the very first two things I did once I got off of the train.

If you don't have the above letter and contacts then favors can always be called in. It helps to know people here. Laws are bent, rules ignored, doors open.

Show up just with your money and the only thing that happens is you spend your money, just like you expect.

6) $50,000 USD outflow per year. That's US Dollars, not CNY. I can send a few thousand RMB and it's no issue. I know people who sold their Shanghai condo, made $500k profit and wired it back to the USA. Wires clear in 2 days or less. Again, they know that people here need to send money back home.

China is the world's 2nd largest economy. They aren't stupid. You can move money around freely.

Thanks. I wish I hope I can find a way to open interest bearing RMB bank account in PRC w/out work or residence permit. Your case makes it sound easy. I checked HK awhile ago but it seems that seems be a dead-end for non residents. Easy to open other currency accounts but RMB limited to HK ID holders and PRC nationals.

Yes, please check out the Credit Coop rates and post at your convenience if you don't mind. That would be much appreciated.

If US$50K is the max outward remittance per year, a person depositing much more than that would have some risk - not able to liquidate total value quickly if the need arised.

[wuxi]

None of the teachers I knew in china had bank accounts.

The government keeps tabs on the flow of money which is why chinese employers don't use automatic deposit for there employees pay cheques. Dealing in cash makes it easier for employers to conceal how much income they make so they can avoid paying taxes. When you exchange money at the airport or get a cell phone you need to show your passport.

[globetrotter]

Were they all under the table without visas? It's normal to get a bank account. It's a non-issue. 2nd largest economy in the world, remember?

"Dealing in cash makes it easier for employers to conceal how much income they make so they can avoid paying taxes."

Sure, I know people who do this to skirt the 20k Yuan bracket jump. They want to keep the monthly low.

"When you exchange money at the airport or get a cell phone you need to show your passport."

True, yes, and so what? No big deal. It does not prevent you from being able to do it, and if you want to exchange money you can find black market forex guys in most major banks in most major cities. Not a problem. I know where I can do that here. I know how to get money out via the grey market. I can wire money directly to my BOA with the usual fees and it shows up in 2 days or less. It's not hard - after all Vancouver's RRE market is propped up with grey market Chinese money.

Most ESL here have student loans to pay and have to find a way to get money back home - everyone figures it out. You are over thinking this.

If you don't want the gov't to track you then don't move to China.

The USA is not much better, now - anyhow. Canada maybe?