CHINA

Export Atlas in PDF

With a population of 1,415 million and a forecasted GDP of $19,231bn in 2025,China is a vast, export oriented economy, characterised by large scale, diversification, and a positive net international investment position (estimated at +15.7% of GDP in 2023, 14% in 2022), though significantly below its peak of 30.4% in 2008. 

This reflects a still‑sizeable current account surplus (about 1.5% of GDP in 2023). Foreign reserves remain substantial (~17.4% of GDP) and liabilities are mostly FDI‑based.
A key weakness lies in China’s elevated debt burden: total economy-wide debt reached roughly 288% of GDP in 2023, with local‑ government and quasi‑fiscal debt exposures high, particularly linked to property and infrastructure sectors.  

Fitch Ratings downgraded China’s outlook in 2024, forecasting public debt (central and local) rising to 61.3% of GDP in 2024 from 56.1% in 2023, with fiscal deficits widening to ~7.1%.

China’s prior experience shows capacity for scale fiscal stimulus — recently unveiling a CNY 1.4 trillion (€ 168 bn) package to stabilize growth—but structural vulnerabilities remain entrenched in a slowing property sector, weak consumer demand, and rising local government financing vehicle risks. 

While overall fiscal credibility persists, contingent liabilities warrant vigilance. Growth is projected at 4.5–4.6% in 2024, easing into 2025, with medium‑term outlook contingent on reform execution, deleveraging property risk, and transitioning toward domestic demand‑led growth.

Summary

BNP Paribas was the first foreign bank to open a representative office in Beijing in 1980, becoming a branch in 1997. The bank was awarded the Greenwich award for “Quality Leader Large Corporate Cash Management No 1", Total Asia, 2018. The bank has four business centres in Shanghai, Beijing, Guangzhou and Tianjin , and a further 16 retail locations, together with full service retail banking through Bank of Nanjing.

It is one of the few international banks catering for both the domestic and international cash management requirements of customers, both foreign companies doing business in China and Chinese entities seeking to expand their international focus.The bank has a full RMB licence to serve all types of corporate clients in all currencies.

BNP Paribas is a major player in trade finance throughout Asia, offering a full suite of traditional trade (letters of credit, bankers’ guarantee, trade financing, standby letters of credit, etc.) and supply chain financing solutions (receivables purchase programmes, supplier financing etc.) products, including a unique inventory solution offered through our trade centres in Australia, China, Japan and Singapore, specifically for companies engaged in international trade, as part of a wider network of more than 100 trade centres globally. BNP Paribas has experienced trade finance advisors and personnel who deliver a range of customised trade solutions and advise on local market practices. These solutions are supported by the bank's ISO-certified trade services support team.

Currency

  • Renminbi (RMB). Onshore RMB is referred to as CNY; offshore RMB is referred to as CNH.

Bank accounts

  • A company is generally considered to be resident in China if it is incorporated or effectively managed or controlled in China, unless the enterprise is regarded as resident in another country under a double tax treaty.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

China has embraced the digital payments revolution. In Q3 2020, 64.97 billion electronic payments were processed with a value of RMB 696.4 trillion; mobile payments reached 34.5 billion, with a value of RMB 116.74 trillion, a year-on-year increase of 26.5% and 35.6% respectively. Having trialled a scheme to replace paper money with a digitized version of the Renminbi, China’s is on target to become the first country to introduce a digital economy. QR codes are a common method of payment with Alipay and WeChat Pay the largest digital payment platforms in the country; both platforms have registered over a billion users. Over 94% of people use WeChat Pay or Alipay as their primary payment method.

Electronic banking services are available from most banks. There is no national electronic banking standard in China, so companies use banks’ proprietary services. Online and mobile banking services are widely available and hugely popular, given the high numbers of smartphone users using their devices to access the internet (approximately 99% of users).

The Internet Banking Payment System (IBPS) integrates the online banking operations of most of the country’s large domestic and foreign banks. Customers can make online transactions in real time, as well as access real-time account information via the IBPS. The limit for a single transaction is RMB 1M.

Short term investments

Interest payable on credit balances

  • Interest-bearing current, checking and demand deposit accounts are permitted.

Demand deposits

  • Demand deposits denominated in RMB or major foreign currencies are available.
  • Banks are free to set rates on EUR, HKD, JPY and USD deposits if amounts are equal to or higher than USD 3 million or its foreign currency equivalent. The interest rate on amounts less than USD 3 million denominated in EUR, HKD, JPY and USD, is subject to a ceiling published by the central bank.

Time deposits

  • Time deposits are available in RMB or major foreign currencies for terms ranging from one week to one year.
  • Banks are free to set rates on EUR, HKD, JPY and USD deposits if amounts are equal to or higher than USD 3 million or its foreign currency equivalent. The interest rate on amounts less than USD 3 million denominated in EUR, HKD, JPY and USD, is subject to a ceiling published by the central bank.
  • Foreign currency time deposits are available for terms ranging from three months to two years.

Certificates of deposit

  • CDs can be issued paying fixed or variable interest. Fixed rate CDs have terms of a year or less. Variable interest CDs have maturities greater than one year.
  • In 2021, the PBC approved the launch of foreign currency interbank CDs.

Treasury (government) bills

  • Short-term Treasury bills are issued by the Chinese government. Terms vary.

Commercial paper

  • Domestic commercial paper and corporate bills are issued by companies. All commercial paper in excess of RMB 3 million is required to be issued electronically.

Money market funds

  • Domestic money market funds are available in the interbank market.

Repurchase agreements

  • Repurchase agreements are increasingly commonplace in China.

Bankers' acceptances

  • These are not common in China.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • As a member of the Asia Pacific Economic Cooperation (APEC) forum, China has agreed to liberalise trade and investment rules between member states.