The Best Way to Exchange Currency in China and Precautions

There are various channels for exchanging currency in China, each with its own advantages and disadvantages. Below is a detailed guide tailored for foreign tourists:

1. Bank Exchange (Recommendation Rating: ★★★★★)

Advantages:
- Best Exchange Rate: Banks usually offer real-time exchange rates, and handling fees are relatively low or even free (details depend on the bank).
- High Security: Major Chinese banks (such as Bank of China, Industrial and Commercial Bank of China, Construction Bank of China) all provide foreign exchange services with standardized and reliable procedures.
- Wide Range of Currencies Supported: Major currencies like US dollars, euros, yen, etc., can be exchanged.

Operating Procedures:
1. Bring Identification: Passport, valid visa (some banks may require it).
2. Choose a Bank: Prioritize Bank of China (most professional in foreign exchange), but other large banks also offer this service.
3. Fill Out Forms: Complete the "Foreign Exchange Application Form" and submit it.
4. Receive Cash: Receive RMB cash on the spot.

Precautions:
- Book in Advance: If you need to exchange a large amount of cash (e.g., over $5,000 USD), it's recommended to make a phone reservation 1-2 days in advance.
- Business Hours: Banks typically operate from 9:00 AM - 5:00 PM on weekdays; some branches may be closed on weekends.

2. Airport Exchange Points (Recommendation Rating: ★★★☆☆)

Advantages:
- High Immediate Availability: Suitable for tourists who urgently need cash upon arrival in China.
- 24-Hour Service: Some international airports (such as Beijing Capital, Shanghai Pudong) have exchange points open around the clock.

Disadvantages:
- Poorer Exchange Rates: Airport exchange points usually offer exchange rates that are 3%-5% lower than those at banks.
- Higher Fees: May charge additional service fees (approximately 50-100 RMB).

Suggestions:
- Only exchange a small amount of cash (e.g., 200-500 RMB) for transportation or emergencies, then proceed to a bank for further exchanges.

3. Hotel Exchange (Recommendation Rating: ★★☆☆☆)

Advantages:
- Convenience: Some high-end hotels offer foreign currency exchange services, eliminating the need to go out.

Disadvantages:
- Lowest Exchange Rates: Typically 5%-10% lower than banks.
- Strict Limits: Single exchange amounts may be restricted.

Applicable Scenarios: Recommended only in emergency situations.

4. ATM Withdrawals (Recommendation Rating: ★★★★☆)

Advantages:
- Flexible and Convenient: ATMs are widely available in China (supporting UnionPay, Visa, MasterCard).
- Reasonable Exchange Rates: Settlements are made according to real-time international card organization exchange rates.

Operating Steps:
1. Confirm that your bank card has overseas withdrawal enabled.
2. Find an ATM machine with a UnionPay logo (Bank of China and ICBC ATMs are recommended).
3. Insert your card, enter your password, and choose "RMB Withdrawal."

Precautions:
- Fees: Your issuing bank may charge 1%-3% in handling fees, and local Chinese banks may add an extra 10-20 RMB per transaction.
- Daily Limit: Usually capped at 10,000 RMB (specific limits depend on your issuing bank).

5. Mobile Payment Linked to International Credit Card (Recommendation Rating: ★★★★★)

Over 90% of consumption scenarios in China support Alipay or WeChat Pay. It’s recommended to prioritize linking an international credit card:
1. Download App: Download Alipay or WeChat from the app store.
2. Register Account: Use an overseas mobile number or email to register.
3. Link Credit Card: Supports major international cards such as Visa, MasterCard, JCB (some small merchants may not accept foreign cards).

Advantages:
- Avoid carrying large amounts of cash, reducing the need for currency exchange.
- Enjoy convenient QR code payments (for dining, taxi rides, shopping, etc.).

General Suggestions

1. Upon Arrival: Exchange a small amount of cash (about 500 RMB) at the airport for transportation and temporary expenses.
2. Daily Expenses: Prioritize using Alipay/WeChat linked to an international credit card.
3. Large Exchanges: Conduct large exchanges through Bank of China for the best exchange rate.
4. Backup Cash: Keep approximately 1,000-2,000 RMB in cash for small merchants or remote areas.

Precautions

• Counterfeit Risk: Carefully inspect the authenticity of RMB during exchanges (especially 100 RMB notes).
• Keep Receipts: Retain proof after exchanges, as unused RMB can be re-exchanged into foreign currency upon departure (original exchange receipts must be shown).
• Black Market Risks: Avoid exchanging through unofficial channels, as this could involve counterfeit bills or legal issues.