Travelling to China calls for some specific preparation: the country runs on mobile payments, yet cash yuan remains a valuable asset for travelling with peace of mind.
Understanding the yuan (renminbi)
The Chinese currency goes by two names that often cause confusion. The renminbi (RMB) refers to the official currency as a whole, literally "the people's money", while the yuan (international code CNY, symbol ¥) is the unit of account you will see on price tags and banknotes. In practice, a price is quoted "in yuan", but you speak of the "renminbi" when referring to the currency in general. Chinese people also use the colloquial word kuai when speaking, much as English speakers might say "bucks".
Banknotes circulate in denominations of 1, 5, 10, 20, 50 and 100 yuan, bearing the portrait of Mao Zedong. The yuan is divided into 10 jiao (or mao), a subdivision still seen for small purchases. Note that the yuan used in mainland China (CNY) differs from the offshore yuan (CNH) quoted in Hong Kong: for a traveller, only the CNY matters on the ground.
Mobile payments: an almost cashless country
China is arguably the world's most advanced society when it comes to cashless payments. WeChat Pay (built into the WeChat messaging app) and Alipay cover virtually all transactions, from department stores to street skewer vendors, including the greengrocer displaying his QR code on a scrap of cardboard. You pay by scanning a code with your smartphone, with no physical contact or card.
Good news for foreign visitors: both apps have recently opened their services to international bank cards (Visa, Mastercard). You can now link your French card to Alipay or WeChat and pay like a local, subject to per-transaction limits beyond which an identity check (passport) may be required. Download and set up these apps before you leave, as registration sometimes requires access to services that are hard to reach on site without a VPN.
Why keeping cash remains essential
Despite the omnipresence of mobile payments, travelling in China without a single banknote would be unwise. Several situations still call for cash:
- Small rural shops, country markets and remote temples, where the connection or the equipment may be lacking.
- Traditional taxis and certain local transport that sometimes refuse foreign cards linked to the apps.
- A smartphone that is dead, lost or out of signal: without cash, you are stuck.
- Tips and minor odd payments, as well as some family-run guesthouses.
The People's Bank of China regularly reminds the public, moreover, that businesses cannot refuse cash in yuan: in principle, any establishment must accept it. In practice, having a few hundred yuan on arrival will save you a great deal of hassle while you set up your apps and find your bearings.
ATMs and withdrawals on site
Cash machines (ATMs) are plentiful in cities, particularly those of Bank of China, ICBC and China Construction Bank, which accept international cards. Be careful, however: the foreign withdrawal fees charged by your French bank, combined with local commissions and an often unfavourable conversion rate, quickly add up. Withdrawals are also capped per transaction, which multiplies the fixed fees if you need larger sums.
For these reasons, it is generally more advantageous to exchange part of your euros for yuan before you leave. You know the exact amount received, you avoid nasty surprises on the rate, and you arrive with cash that is immediately usable. At Paris Change, a bureau de change approved by the ACPR (Banque de France), you can order your currencies online and then collect them in store, with no commission, from over 53 available currencies.
Tipping, bargaining and local customs
Tipping culture is almost non-existent in China: in restaurants and taxis, it is neither expected nor customary, and may even come as a surprise. Only some upmarket hotels and tour guides accept it. Bargaining, on the other hand, is still the norm in markets and souvenir shops, where showing cash can help with a negotiation. Keep your banknotes in good condition: torn notes are sometimes refused.
Customs rules to know
When leaving France as well as arriving in China, bear in mind the regulations on cash. On exiting or entering the European Union, any movement of cash equal to or greater than €10,000 (or its equivalent in foreign currency) must be the subject of a mandatory customs declaration. China, for its part, applies its own declaration thresholds on entering and leaving the country. For a tourist trip, these limits are more than sufficient: plan for a reasonable amount of yuan in cash and top up with mobile payment once on site.
Frequently asked questions
Do you need cash, or is everything paid by mobile in China?
Mobile payments (WeChat Pay, Alipay) cover the vast majority of transactions, but keeping a few hundred yuan in cash is still strongly advised for small shops, rural areas and technical mishaps.
Is it better to exchange your euros in France or withdraw cash on site?
Exchanging in France lets you know the amount received in advance and avoid the fees and unfavourable rates of local ATMs. You arrive with cash that is directly usable from the airport.
Is tipping expected in China?
No, tipping is not a common practice in China and is generally not expected in restaurants or taxis, unlike in France or English-speaking countries.
Prepare for your trip with complete peace of mind: drop by Paris Change, 4 Boulevard Saint-Michel in Paris (Saint-Michel metro), open 7 days a week, or order your currencies online right now for quick collection in store.
