Observation, probably not too original: I find it interesting that there are quite a few people who really seem to know how to handle this OP concerning relatively large amounts of money (relative to a few years ago). Doubtless a reflection of changes within the local foreign community, perhaps primarily or largely within the US-American section.
In five years, Bitcoin may have matured and be a great way to get your money out of the country (direct, no restrictions, hardly any fees). Bitcoin markets exist in China too, bought my own first bitcoin here.
If you catch a bullish wave, you may even make some money off it.
@SarahB: As detailed in this thread, there are legal ways to repatriate the money as long as it is accounted for and taxed accordingly within China.
@Xiefei: I know a Chinese can send out $50K a year. But I don't know if there are any conditions. I am sure there are a lot of documents needed. Some how I can't see a Chinese person just deciding to pony up 300+K yuan and send it out of China.
Does the $50K work for foreigners as well? I keep seeing 'get a Chinese friend' involved.
Twitter, in the last 48 hours, has had multiple tweets about how China is busting multiple $50K tranches being sent to one account in the US. Several Chinese have been caught.
actually, as Xiefei said, it is perfectly legal and currently there is no daily or annual ceiling limiting the amount an individual can transfer as long as the person can demonstrate the money was legitimately earned and taxes have been paid on it. as long as you can tick every box in the SAFE application, the bank you bank with will assist you in filing that application with SAFE. sounds simple enough. the new regime i mentioned earlier might change that, thus my last post. finer details needs verification so it is a RUMOUR at this stage.
@Geezer: The limit for foreigners is much lower. I don't have the actual figures on hand, but I think you can only buy up to the equivalent of $500 USD a day, and you need a lot of paperwork to send it home.
The Chinese $50k limit requires basically no paperwork. I regularly send money home via my wife's account. There are a lot of boxes to tick, but you don't have to go into the bank and provide documentation. I'm able to do the whole process online.
@rejected_goods: I've also been hearing rumors about a change in currency controls, but no details. I suspect they could drastically reduce capital outflows by simply better enforcing the existing rules and forcing a bit more documentation. It could always end up being much more than that, but of course that could set off a panic.
@SarahB: If you are 100% legal, just use SWIFT as described.
@Xiefei: yeah, that could set off a panic but not because the 'imminent' controls. that, i am sure the local can beat that any day. it is the worry that a currency controls is a precursor to a deeper depreciation cycle....
i am on a short trip in the south now. i have seen increasing number of 'normal' chinese (not the gambling type) in the south buying up Macau casino chips in the black markets. that tells me something.... :-(
@Xiefei: Thanks. In March 2014, the limit was buying $1,000 USD per day. Luckily, I had 3 relatives in Kunming who bought the dollars for me at BoC and finally at the airport. The money was carried out.
The limit on foreigners converting Yuan to USD is income based and requires tax payment certificates. Getting the tax payments documented depends on your employer. Chinese law says you are due a certificate but they are hard to get.
I had USD balances in a couple of Chinese banks but needed to convert to Yuan to get the cash. Proof of buying Yuan with USD (ATM receipts) allows getting more Yuan converted to USD. Last time I bought USD in Kunming, I got $3K in one transaction.
It has been more than 12 years since I needed to take cash out of China and regulations were very different back then. Wiring USD out of China wasn't really doable. My Yuan business income was deposited in a bank account. Once I began to live in China, I eventually used most Yuan I had on deposit.
The OP question was about Yuan worth $100K USD being converted and transferred out of China. I assumed the problem was either from after tax income over the five years, or, the proceeds of an investment. Since the limits are on conversion, buying the $100K USD, is the problem. Once in hand, getting the $100K wired out of China is a second problem. Best would be to get it to HK and wired from there. A friend carried about $20K USD back in his coat and it was found by customs at LAX. Unless you enjoy being strip searched and questioned every time you reenter the US, I wouldn't attempt that.
"A friend carried about $20K USD back in his coat and it was found by customs at LAX."
That's actually totally legal, as long as you declare it. You'll likely have to fill out some forms, but that's it.
Of course, with all the asset seizures in the news these days, it's probably still a gamble.
