For every businessman , when you import from China,  e.g., do business with china wholesale electronics company . you should have some basic understanding of chese “money”

China’s currency is the renminbi (RMB) or “people’s currency”. The official international abbreviation of the renminbi is CNY (for “Chinese yuan”), although the currency is more often shortened to RMB. It is been in use since shortly before the Communist accession to power in 1949.

The basic unit of the RMB is the yuan. For reasons of consistency, this guide uses the term RMB for cash amounts, but yuan is equally acceptable. Colloquially, the key currency unit is referred to as a “kuai.” One yuan can be divided into 10 jiao (colloquially known as “mao”) or 100 fen (the “cents” of the RMB, which are rarely used).

All RMB bills come in denominations of one, five, ten, twenty, fifty and one hundred yuan. Nearly all bills feature a prominent portrait of Mao Zedong.

Cash is still the most common way to make purchases in China, especially in the less-developed west of the country and in minor cities where the majority of small stores, restaurants and air/rail ticket vendors do not accept credit cards.

The renminbi was effectively pegged to the US dollar at a rate of roughly US$1 to RMB8.28 between 1994 and 2005. The peg was then replaced by a linkage between the RMB and a basket of currencies, and as of October 2007 was trading at about US$1 — RMB7.51. Updated renminbi exchange rates are available at www.xe.com.

Credit cards
Credit cards are now, however, widely accepted in major cities in bars, restaurants and large retail outlets. Major stores, supermarkets and hotels in secondary cities will also accept them. This is one of the most convenient ways to make purchases, as credit/debit card transactions give you the best exchange rate. At present, the credit cards accepted in China are Mastercard, Federal Card, Visa, American Express, JCB, and Diners’ Club Card.

If you plan to open a bank account in China, you may apply for a Great Wall International Card through the Bank of China, which can be used for revolving credit, spending, cash withdrawal and online transactions. General deposit and savings accounts are easy to open with domestic banks with a minimal deposit, and US dollars or renminbi can be used to open the account. A cash card for the bank’s ATMs can be issued while you wait. One of the most modern banks to emerge from the opening up drive is China Merchants Bank which was among the first to offer telephone and online banking services via computers on the mainland.

ATMs
ATM cards, or debit cards, also come in handy, as many ATMs in large cities accept cards with the Cirrus network logo. Be aware, though, that despite the appropriate logo, there are still many ATMs that cannot access your account. It is best not to wait until you have little or no money in your wallet before you go to the ATM, as there is always the risk that the machines will be empty or out of order. It is not recommended to rely on your ATM card if you are traveling out of the city.

Your bank will usually charge a US$1- US$3 service fee for each transaction made on a foreign ATM, but most Chinese banks will not levy additional charges. If you are in a large city, you can avoid this service fee by using an HSBC or Citibank card in any one of their ATMs.

It’s possible to get cash over the counter at any branch of Bank of China using a credit or debit card provided you take your passport along with you as supporting identification. Be aware that this service is not available at weekends however.

Foreign currency
If you travel to China with foreign currency or travelers’ cheques, it is easy to exchange for RMB in major banks (Bank of China, CITIC Industrial Bank and HSBC) in the largest and secondary cities and top hotels (although hotels usually don t provide the best exchange rate). Just bring your passport with you. If you are in more remote areas, your best bet is the Bank of China. Be aware that the waiting time in banks can be very long.

It is recommended that you keep the receipts from all exchanges in case customs asks to see them when you leave the country.

Travelers’ cheques
The Bank of China can cash travelers’ cheques sold by international commercial banks and travelers’ cheque companies in the United States, Canada, Australia, Hong Kong, Japan, Britain, France, Switzerland, Germany as well as many other countries. The Bank of China also sells travelers’ cheques for other banking institutions such as American Express, Citibank, Tongjilong Travelers’ Cheque Co., the Sumitomo Bank of Japan and the Swiss Banking Corporation.

Tourists are permitted to take up to RMB 6,000 (in cash or travelers’ cheques) out of the country, but you may prefer to convert all RMB back into foreign currency, so do keep receipts for all currency transactions.

Counterfeit banknotes
Be aware that there are a lot of counterfeit banknotes in circulation in China, particularly RMB 100 notes, which is another reason to make currency exchanges in banks rather than with black market dealers.