The Chinese Yuan/Renminbi: A Traveler's Guide
China looms large on the global stage as the world's most populous country, second-largest economy, and largest exporter. Its renminbi currency — which translates to "people's currency" — also plays an increasingly key role in global trade and geopolitics.
For American travelers, China has become considerably more accessible in recent years. Borders reopened (after COVID closures) in 2023, the country's high-speed rail system is among the best in the world, and payment systems now better accommodate international visitors.
That said, a trip to China takes intentional planning. Let's walk through the currency, the visa options, and how to handle money before, during, and after your trip.
Brief History of the Yuan/Renminbi
Although China’s currency is known as the renminbi, the bills themselves are referred to as yuan.
The renminbi has been issued by the People’s Bank of China since 1949, with various updates in the years following. Pegged to the dollar from 1994 until 2005, the renminbi’s value is now set within a range the government adjusts against a mix of world currencies (known as a “managed float”). The renminbi was selected by the International Monetary Fund (IMF) as one of its official reserve currencies in 2016, alongside the US dollar, the European euro, the British pound sterling, and the Japanese yen.
As China’s economic growth has exploded on the strength of its booming export business, many experts assert that China devalued its currency in order to cheapen the price of goods on the international market (relatively cheaper goods give China’s export business the upper hand, spurring economic growth). This led to the Trump administration officially labeling China as a currency manipulator in 2019 (the designation was removed the following January).
Traveling in China
China is one of the oldest and most sprawling civilizations on earth, and for those who make the journey, it is also famously accessible. Its many regions are generally best accessed by its vast train network, which is among the fastest and most extensive in the world.
The majority of tourist travel is concentrated in China’s three most famous cities — Beijing, Shanghai, and Xi’an — but its great web of trains and buses makes even the remote corners of this sprawling country surprisingly accessible to foreigners.
China’s borders were closed to nearly all international travel for about three years under the country’s notorious “zero COVID” policy, before fully reopening to foreign travelers in April 2023.
Before Your Trip
Get your visa. For a standard round-trip visit, Americans need a tourist visa, known as an L visa — most applicants can get a 10-year multiple-entry version, but it requires an in-person appointment at a Chinese consulate or visa center. If your trip continues on to a third country, you may instead qualify for the 240-hour visa-free transit policy, which allows up to 10 days via 65 designated ports of entry.
Obtain a VPN. Most Western travelers will appreciate obtaining a Virtual Private Network or “VPN” that will enable access to otherwise blocked websites like Google, Facebook, and YouTube. It is much harder to obtain a VPN once in China, so handling this before your trip is essential if you plan on accessing most of the internet during your stay.
Be prepared to pay in cash. Far fewer businesses throughout China accept credit cards than in the United States, with much heavier reliance on cash and digital payment platforms. While it is still worth bringing your credit card(s) along, you may find that only a handful of tourist-focused businesses accept them.
Set up a payment app before you fly. Alipay and WeChat Pay are the go-to apps for everyday spending in China, and both now let foreign travelers link a Visa or Mastercard directly. Make sure to complete the in-app passport verification before your trip to prevent being stuck with low transaction limits at some hotels and restaurants. Finally, travelers should know that Apple Pay remains largely unusable in China.
Notify your bank. Because virtually all travelers will be withdrawing cash during their trip, it is crucial to notify your bank prior to your departure. Even then, travelers occasionally have issues with frozen bank accounts and inaccessible funds. The safest option? Obtaining at least some yuan prior to your trip.
Don't Wait: Buy Chinese Yuan Now
During Your Trip
As mentioned, you will likely be paying cash throughout much of your trip, with the possible exception of digital payments. As with all international cash withdrawals, be prepared to pay both a foreign transaction fee from your home bank and a withdrawal fee from the ATM. For those traveling deep into China, be aware that certain areas — such as Tibet — may have little to no ATM access. Thankfully, most of China is dotted with accessible ATMs.
Lastly, it is worth noting that there are certain cultural norms that are likely to catch a first-time American traveler off-guard — the lack of toiletries in many public bathrooms, for instance — so do some basic due diligence before you travel.
After Your Trip
Upon your return to the US, you can easily sell your remaining currency back to us without needing to wait in line at a bank. Simply enter your transaction on our website, and we’ll send you a printable label that you can package and drop off at any FedEx location. One day after we receive your currency, you will receive a deposit in your bank account of choice, or a check in your hands via FedEx delivery.
Key Takeaways
- Americans need a tourist (L) visa for a standard round trip. A trip continuing on to a third country may instead qualify for 240-hour visa-free transit.
- A VPN is essential and must be obtained before you arrive. Google, Facebook, and other Western sites are blocked in China.
- Alipay and WeChat Pay now accept foreign Visa and Mastercard. Complete the in-app passport verification before you fly to avoid low transaction limits.
- Cash remains widely used across China. Obtaining yuan before departure avoids frozen-card headaches and ATM fees.
