Paying suppliers in China: should you use CNY, CNH or USD?

Paying a supplier in mainland China is not only about sending the amount shown on an invoice. A Swiss importer may be quoted in US dollars even though the supplier operates and pays its own costs in renminbi. The resulting payment can involve a CHF to USD conversion for the buyer and a later USD to CNY conversion for the supplier. 

The practical questions are therefore broader: which currency can the supplier receive, which payment rail will be used, and what will the transaction cost in CHF once the quotation, conversion and charges are considered together? Paying directly in CNY or CNH can simplify the route and sometimes lower the cost, but every case is different.

Why is the Switzerland-China trade context important? 

China remains a major sourcing and manufacturing market for Swiss companies. The bilateral free trade agreement between Switzerland and China has been in force since 1 July 2014. It can reduce or remove customs duties for qualifying products, although the treatment of a shipment still depends on factors such as tariff classification, origin and the applicable agreement rules. 

The wider trend towards de-dollarisation also makes the payment currency more visible in commercial discussions. Some suppliers prefer to be paid in their local currency rather than manage a conversion after receiving USD. This does not determine the best option for a specific invoice, but it gives Swiss importers a reason to compare a direct renminbi payment with the familiar USD route.

Scope: Excludes precious metals, precious stones and gems, works of art and antiques.

Source: Federal Office for Customs and Border Security, trading-partner statistics for 2025

What should you check before agreeing on the invoice currency? 

Begin with the supplier quotation rather than the exchange rate alone. The commercial price and the payment rail need to be comparable before the business can judge whether USD, CNY or CNH is the more suitable option. 

Should you pay a Chinese supplier in USD, CNY or CNH? 

CNY and CNH both refer to the Chinese renminbi, but they operate in different markets and are not interchangeable for every payment. For a fuller explanation of the two renminbi markets, read our article about the difference between CNY and CNH.

How can a direct renminbi payment simplify the transaction? 

For many Swiss importers, a clearer setup is to agree the invoice in CNY or CNH, convert CHF directly into that currency and pay the supplier without routing the transaction through USD. 

This reduces the number of conversions and gives both parties greater visibility over the currency and amount agreed. It does not guarantee a lower total cost, but it removes one potential layer of FX and banking complexity. 

SwissFx supports direct conversion from CHF into CNY or CNH. The diagram below compares this route with a payment that uses USD as an intermediary.

Route with USD as an intermediary

Possible second conversion

Swiss business funds in CHF

Convert CHF to USD

Send USD to China

Supplier converts USD to CNY and receives funds

Direct renminbi route through SwissFx

One Conversion

Swiss business funds in CHF

SwissFx converts CHF to CNY/CNH

Payment in agreed renminbi currency

Supplier receives CNH or CNY

Route with USD as an intermediary

Possible second conversion

Swiss business funds in CHF

Convert CHF to USD

Supplier converts USD to CNY and receives funds

Send USD to China

Direct renminbi route through SwissFx

One Conversion

Swiss business funds in CHF

SwissFx converts CHF to CNY/CNH

Supplier converts USD to CNY and receives funds

Send USD to China

Route with USD as an intermediary

Possible second conversion

Swiss business funds in CHF

Convert CHF to USD

Supplier converts USD to CNY and receives funds

Send USD to China

Direct renminbi route through SwissFx

One Conversion

Swiss business funds in CHF

SwissFx converts CHF to CNY/CNH

Supplier receives CNH or CNY

Payment in agreed renminbi currency

The diagram shows the commercial flow in simplified form. The exact payment route must then be confirmed against the supplier’s receiving account and the currency selected.

How does the payment reach the supplier in mainland China? 

The payment can use either local or international payment rails. 

• Local rails generally route the funds through the domestic payment infrastructure of the receiving market.  

• International rails involve a cross-border banking network and may include intermediary banks before the funds reach the supplier’s account. This can affect processing times, fees and the amount ultimately credited. 

For more detail on the mechanics, see our SwissFx guide to wire transfers and bank transfers. 

SwissFx’s current capabilities differ by renminbi currency:

• CNY: international payments are available. 

• CNH: local and international payments and collections are available. 

The appropriate route depends on the currency selected, the supplier’s receiving account and the payment details. These points should therefore be confirmed before the conversion and payment are executed.

How should you compare the total cost in CHF? 

The quoted exchange rate is only one part of the comparison. The business should calculate the complete CHF cost of each option, including the supplier price, the FX margin, payment charges and any fees that may be applied by intermediary or beneficiary banks.

Example: a Swiss importer buying equipment in Shenzhen

Assume the supplier's original price is CNH 1,000,000. It also offers a USD quotation that includes a hypothetical 2% buffer to cover conversion, exchange-rate uncertainty and banking costs. The comparison would start as follows:

The importer should then calculate the CHF required for the USD invoice and the CHF required for the direct CNH invoice at comparable execution times, before adding any transfer charges. The CNH quotation is not automatically cheaper: some suppliers do not add a conversion buffer, and the rates and fees available to the buyer also matter. 

The 2% figure is an illustrative assumption. It is not presented as a typical supplier charge or a guaranteed saving.

Estimate the CHF cost of a CNH supplier payment

Send

CHF

Receive

EUR

You could save up to*

EUR

*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

Send

CHF

Receive

EUR

You could save up to*

EUR

*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

Send

CHF

Receive

EUR

You could save up to*

EUR

*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

How can recurring or future supplier payments be organised? 

Pay several suppliers in one run 

When a company pays several Chinese suppliers or repeats the same workflow each month, bulk payments can group transactions into a single payment run. Where supported, integration with the company’s enterprise resource planning (ERP) system can also reduce manual data entry and streamline the transfer of approved payment information. Beneficiary data, amounts and currencies should still be reviewed, with appropriate access rights and approval controls in place before release. 

A predictable future CNY or CNH payment 

A forward contract can fix an exchange rate for a sufficiently certain future payment and make its CHF cost more predictable. SwissFx currently offers deliverable forward contracts for businesses buying both CNY and CNH. CNY is also supported through non-deliverable forwards (NDFs). 

A deliverable forward provides the currency at settlement, which can then be used for the supplier payment. An NDF settles only the difference between the agreed rate and a reference rate. It does not itself deliver CNY, so the underlying supplier payment must be arranged separately. Any contract should match the expected amount and payment date as closely as possible and remains subject to eligibility, assessment and agreed terms. 

A cash-flow gap before goods are sold 

Business lending  can provide a separate line of credit when an approved invoice falls due before the related goods generate revenue. At SwissFx, our lending partner pays the supplier in local currency and the Swiss business repays in its domestic currency up to 150 days later. 

The conditions include  more than £1 million in operating revenue, tangible net worth above £100,000 and at least two years of trading history.  

Financing is provided with a certified lending partner and remains subject to credit checks, eligibility, assessment and agreed terms and conditions.  

What should you check before confirming a payment setup?

How can SwissFx support supplier payments to China? 

SwissFx brings the conversion, payment and related planning tools into one operating setup. The most direct route for many importers is to convert CHF into the renminbi currency accepted by the supplier and pay the beneficiary from the platform.

The appropriate combination depends on the supplier account, invoice currency, payment frequency, transaction certainty and the company's cash-flow requirements. Capabilities should be confirmed for the specific payment before the commercial terms are finalised.