Hiring freelancers and contractors based in China is common practice, but the mechanics of paying them is sometimes confusing. It’s not as simple as wiring money to a bank account. There are currency rules, tax requirements and documentation hoops that can delay or freeze your payment if you get them wrong.
The good news? Once you know the system, it’s perfectly manageable. This guide tells you exactly how to send USD to freelancers in China.
The $50,000 Annual Limit
Here’s where most guides get it wrong. Your freelancer can receive unlimited amounts of foreign currency from you. However, China limits them to converting $50,000 USD to Chinese yuan per calendar year without special approval from the currency regulator (SAFE).
This distinction matters:
- Paying $50,000 or less: Your freelancer receives it, converts it to yuan, no problems.
- Paying $75,000: Your freelancer receives all $75,000. They can convert $50,000 to yuan immediately, but must either keep the remaining $25,000 as USD or wait until Jan. 1 when their quota resets.
- Paying $100,000+: Same principle. They can receive it all, but conversion is limited to $50,000 per year.
When the limit does not apply
China’s permits exemptions for certain purposes, including educational expenses abroad, medical treatment and professional training. However, these exceptions are not relevant for most consulting or contract service payments. But these aren’t relevant for most consulting or contract work, so don’t count on them.
What this means for you: For payments up to $50,000, there are essentially no complications: your freelancer receives, converts and spends without issues. Above that, it’s about conversion timing rather than whether they can receive the funds at all. If you’re planning a big project, have a quick conversation with them about how they want to handle the currency side.
How Much Paperwork? It Depends on the Amount
Beyond the conversion quota, there are documentation thresholds that determine how much paperwork your freelancer needs to provide.
Tax Compliance
Chinese banks now actively check that your freelancer declare their foreign income to the tax authorities. Chinese banks must verify tax compliance before processing international payments for services.
What your freelancer needs to do:
Bottom line: This isn’t your job to sort out, but do discuss timelines with your freelancer. If you’re planning a big project, factor in 4-6 weeks before that first payment lands.
Getting Your Documentation Right
Chinese banks are picky about documentation. Small mistakes can delay payments for weeks. Here’s exactly what you need:
Invoice
- Invoice number and date
- Specific description of services
- Amount in USD
- Your freelancer’s full name, address, and ID/passport number
- Bank details including SWIFT code
- Freelancer’s Tax ID
Contract
- Clear scope of work and deliverables
- Project timeline
- Payment terms and currency
- Both signatures and dates
- Ideally in both English and Chinese
Crucial: The invoice amount must match the wire amount exactly. Banks cross-check everything and discrepancies trigger holds.
How Payments Get Frozen (And How to Avoid It)
The scenario that concerns most clients is discovering their freelancer’s account has been frozen or the incoming wire placed on hold pending investigation. Here’s what usually triggers that:
- Informal or inconsistent documentation (WhatsApp messages don’t count as contracts)
- Payment amount much larger than the freelancer’s usual income pattern
- Multiple rapid payments without documented milestones
- Vague work descriptions
- No evidence of tax compliance
- Money routed through a third party instead of directly to the freelancer
To stay safe:
Wire directly from your account to theirs. Never use intermediaries or “agents” who promise to simplify things.
Keep everything consistent. Invoice matches contract matches wire description matches actual work done.
Give your freelancer a heads-up. Ask them to confirm their bank accepts international USD transfers and that they’ve got their paperwork ready.
Keep records for at least 5 years. Invoices, contracts, wire confirmations, emails about the project. If questions arise later, you’ll want these.
How Long Will It Take to Send USD to a Freelancer in China?
A well-documented payment typically clears in 3-5 working days.
Allow 5-10 days if it’s your first transfer to this freelancer, it’s over $10,000, or you’re based in a country with strict compliance rules (U.K., EU, Canada, Australia).
For payments over $50,000 where your freelancer needs to convert everything and hasn’t yet sorted their SAFE approval, it’ll take about 4-6 weeks before they can expect the money to be fully accessible in yuan.
Your Pre-Payment Checklist
Before you send that wire, run through this:
- You have a proper invoice with all the details listed above
- You have a signed contract showing the work and payment terms
- Your freelancer has confirmed their bank accepts international USD transfers
- For payments over $10,000: your freelancer has filed tax documentation
- Invoice amount matches exactly what you’re sending
- You’ve got the correct SWIFT code and full bank details
When submitting the wire, write a clear description: “Payment for [specific service] per Invoice #[number] dated [date].”
The Bottom Line
Paying freelancers in China is completely legal and plenty of businesses do it routinely.
The golden rule: formal, consistent documentation and tax compliance prevent delays. Shortcuts (informal invoices, vague contracts, missing tax filings) create friction that can hold up payment for weeks.
Put the effort in upfront with proper documentation, and you’ll build a smooth payment relationship that only gets easier over time.
