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What are your thoughts about receiving payments from China?

by davejug1
9 replies
For the past 2-3 years the fastest rising economy has been China and there are now masses of money floating around that country, which due to their reputation and laws, very rarely leaves the country.

I have been offered an opportunity so break into the Chinese market but am dubious.

I'd like advice about the best (practicality, safety etc) process for moving money from someone who is currently selling to the Chinese market (rather than buying from)

Any help would be greatly appreciated.

Dave.
#china #payments #receiving #thoughts
  • Profile picture of the author Ross Cohen
    While some of my closest, most trustworthy friends are Chinese, something about funds coming from so far away scares me - for some reason, in my head, I believe they're safer if coming from across the country than across the world. Just my thinking, but to some extent could prove true.
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    • Profile picture of the author davejug1
      Originally Posted by resellcells View Post

      While some of my closest, most trustworthy friends are Chinese, something about funds coming from so far away scares me - for some reason, in my head, I believe they're safer if coming from across the country than across the world. Just my thinking, but to some extent could prove true.
      Indeed, I know a lot of the payment processors feel the same. The communist culture that has bred secrecy is the issue I think.

      In finance, secrecy is actively discouraged, so I'm thinking direct bank transfers or WU are the only real options.
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  • Profile picture of the author chinacharly
    Not sure what you want to do. Are you referring to how to get your money out of China?
    And then are you asking how to do it "secretly"? Meaning to avoid the taxes?

    I could write a book on that and how to do it! If there was a way, I've tried it.

    But in the end, you would be avoiding the laws and eventually whatever loophole there is will be found out and closed. And if you can be reached by the long arm of the law whether it be US or China may get you.

    I have a friend who (not intentionally) ran afoul of chinese tax laws and really had no choice but to pay up. No. Did not get locked up and did not get shut down. The gov't just wants their cut. Just as the US gov't is the same way.

    Don't be afraid of doing business in/with China. Chinese money is just as good as US money. It's spendable! It'll buy you the Ferrari just like US dollars will!
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    • Profile picture of the author davejug1
      Originally Posted by chinacharly View Post

      Not sure what you want to do. Are you referring to how to get your money out of China?
      And then are you asking how to do it "secretly"? Meaning to avoid the taxes?

      I could write a book on that and how to do it! If there was a way, I've tried it.

      But in the end, you would be avoiding the laws and eventually whatever loophole there is will be found out and closed. And if you can be reached by the long arm of the law whether it be US or China may get you.

      I have a friend who (not intentionally) ran afoul of chinese tax laws and really had no choice but to pay up. No. Did not get locked up and did not get shut down. The gov't just wants their cut. Just as the US gov't is the same way.

      Don't be afraid of doing business in/with China. Chinese money is just as good as US money. It's spendable! It'll buy you the Ferrari just like US dollars will!
      Thanks for your input Charly, I know you have experience if this.

      My intention is not to do anything either illegal or immoral. My question really is this:

      If I have a hungry Chinese market willing to pay money for my service, how do I get this money.

      You're statement that Chinese money is just as good as US money doesn't exactly ring true since a lot of illegal activity now originates from China whereas it used to be from Central Africa. In view of this, European banks have to make countless money laundering checks if money is being sent here, I'm sure this would be the same for payment processors and they often block large payments coming in.

      So Charly, if you have taken money from China and moved it to the US how have you done so?
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      • Profile picture of the author GMD
        Banned
        Here's a little about what we know:

        More and more Chinese are making decent incomes -- the market there is exploding in terms of need for products and services.

        The greatest concentration of English speaking people is, yes, China.

        The number of persons in China online (or access to computers and going online is huge and increasing literally daily).

        This market does have credit and debit cards that may be used online.

        Europe is a great example of people there actively doing business with the Chinese. For example, I'm acquainted with several individuals in Europe that have their own factories on mainland China designing and assembling jewelery for the German market -- there's never been a problem with these people traveling to their factories there, putting money in, getting money out. That example permeates all over Europe and in fact most of the rest of the world.

        The answer to your question lays with exactly what it is that your planning on doing.

        If you're simply doing something "online" where your Chinese customers purchase something online from you (service/product) and you receive those funds through a payment processor some kind, then why the hell not try?

        If you're investing a significant amount of money that must be delivered to a Chinese contact whom you've never met (or even if you have met) it's of course probably not a good idea.

        If you can pretty much do everything online and deliver everything online, then why not give it a shot. Their "money" is as good as ours. At the end of the day, whatever money you receive will be received by you in your local currency -- the risk of fraud, chargebacks, and the like is as ever present as doing business with anybody else anywhere in the world.

        The "distance" the money travels is totally not relevant. Today money is zapped around the world in seconds and transferred instantly. Every major bank in the world has a footing in mainland China.

        Politics be damned, China is a great market to try to crack -- it just takes a different approach to marketing than other parts of the world. If you can attempt this without risking too much money that you otherwise can't afford to lose, then why not give it a shot?
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  • Profile picture of the author HarrieB
    Since Most of the countries are afraid of china's growth and prospects , that is why they go against China and even Google had its ups and downs with China.

    My cousin Imports T-SHIRTS from china and bangkok and he never had issues both getting money from china and sending them money online!!

    Just my 2 cents
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  • Profile picture of the author davejug1
    Well after looking into it, it looks like Paypal now do international payments for people who sign up through their Chinese website. All looks ok.
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  • Profile picture of the author Adam1987
    Paypal sucks it is too easy for anyone to do a chargeback, also most Chinese have never heard of Paypal.

    The safest and most popular way of selling anything in China is by using Taobao and Alipay.
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  • Profile picture of the author BrianCorcoran
    Yeah paypal would be your best bet. There was a great BBC documentary about an business man who had moved to china and setup his own factory, a great insight into how they do business over there!
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