International settlements with China

Settlements between Russia and China remain an important part of international trade, especially in the context of growing trade between the countries. Despite the development of new payment instruments and the emergence of alternatives, classic payment schemes through banks using the SWIFT system remain relevant for large contracts, supplies of raw materials and industrial equipment.
We will analyze how such calculations are arranged, what to pay attention to and when it is better to consider other options.

What is a SWIFT payment?

SWIFT (Society for Worldwide Interbank Financial Telecommunication) It is an international system for transferring financial messages between banks. It does not transfer money directly, but provides the exchange of payment orders through secure channels.
More than 11,000 financial institutions in 200+ countries operate through SWIFT.

For international calculation:

1. The buyer makes a currency payment order in his bank.
2. The payment message is transmitted via SWIFT to a correspondent bank in another country.
3. After confirmation, the money is credited to the recipient’s account.

Key featureSWIFT is not a payment system in the usual sense, but a secure data network between banks.

Currency Control in Russia and China

Currency control in Russia

In Russia, any foreign economic operation is strictly checked:

• Contracts must be registered with the bank.
• All payments must be confirmed by documents (contract, invoices, transport documents).
• The Bank monitors the terms of fulfillment of obligations under the contract and the return of foreign currency earnings.
• In case of non-compliance with the timing of calculations, fines are possible.

What's important to know:

• Each foreign trade transaction is accompanied by a transaction passport or a unique contract number.
• Not only payments, but also the actual receipt of goods are checked.
• Banks require copies of contracts, specifications and confirmations.

Currency Control in China

China also strictly regulates international payments to control capital flows.

• All receipts in foreign currency pass through the state system SAFE (State Administration of Foreign Exchange).
• Banks check the purpose of payment and documents.
• Some goods or large contracts may require proof of transaction validity (e.g. export declarations).
• For exporters, this means that in order to receive payment, they must provide the bank with copies of contracts, invoices, and export documents.

Conclusion: In both countries, banks act as a filter for international payments. This reduces risk but increases bureaucracy and timelines.

Timing of admissions and commissions

Average time of SWIFT payment between Russia and China 1 to 5 working days. However, due to enhanced compliance controls, especially for large amounts or new counterparties, payments may be delayed for a period of time. 10-14 days.

Commissions:

• Banks of Russia and China charge a fee for the transfer (usually 0.1-0.3% of the amount, but not less than 20-30 USD).
• In addition, a corresponding bank commission (from 20 to 100 USD) may be charged.
• The principle of cost sharing is often used:
  • OUR - the sender pays;
  • SHA - expenses are divided;
  • Ben - pays the recipient.

Advantages of direct payments through banks

High security and transparency.
Ability to work with large amounts.
Official documents for accounting and customs.
Convenient for long-term contracts and commodity supplies.

This method of calculation is suitable for companies that:

• Import large quantities of goods or equipment.
• They work under letter of credit schemes.
• They want to minimize the risks in the first place.

When to consider alternatives

While SWIFT remains the standard, it has drawbacks: high fees, long deadlines, and bureaucracy. In some cases, it is better to use other channels:

1. RMB accounts in Chinese banks.
   They allow to speed up calculations and reduce commissions for currency conversion.
2. Russian SPFS system.
   An alternative to SWIFT for some Chinese banks working with Russia.
3. Payment companies and fintech solutions.
   Specialized payment providers offer more flexible terms.
4. Clearing schemes and barter.
   Suitable for specific transactions or work within holdings.
   

SWIFT payments and traditional bank settlements remain the main tool for large contracts with China, but require competent support and preparation of documents. For companies that value speed and cost optimization, it’s worth exploring alternative solutions: renminbi settlements, fintech services, and local messaging systems.

The key to success is a balance between security and efficiency, and an understanding of the nuances of both countries’ currency controls.