Which are the major banks in China, what do Chinese and international banks each offer foreign-invested businesses, and how should a company choose between them? This guide profiles the leading banking options and sets out the practical criteria that matter for daily operations, tax payments, and cross-border transactions.

Choosing a bank is one of the first decisions a foreign-invested enterprise (FIE) faces after incorporation in China, and it has lasting consequences for daily operations, tax compliance, and cross-border fund flows. China’s banking sector is dominated by large state-owned institutions with nationwide networks, while a number of international banks operate locally incorporated subsidiaries in the major cities. Each option serves different needs, and many FIEs ultimately use a combination of both. Understanding the strengths of the main institutions helps investors match their banking setup to how the business will actually operate.

Open Bank Accounts

Need support in opening a bank account in China? Our legal team can help.
Schedule a Free Consultation

Which are the major Chinese banks for foreign-invested businesses?

China’s “Big Four” state-owned commercial banks are the four largest banks in the world by assets, led by the Industrial and Commercial Bank of China with assets of around US$7.6 trillion at the end of 2025. Together with the Bank of Communications and the largest joint-stock banks, China Merchant Banks, they form the core options for FIEs:

Which international banks operate in China?

Several international banks maintain locally incorporated subsidiaries in mainland China, primarily serving corporate clients in the major business hubs:

International banks appeal to FIEs whose parent companies already bank with the group, as this simplifies group treasury management, credit arrangements, and day-to-day communication. Their main limitations are a smaller branch footprint, more document-intensive account opening driven by group-level KYC requirements, and the fact that relatively few international banks have connected to the State Taxation Administration’s electronic tax payment infrastructure. An FIE that banks primarily with an international bank will therefore usually still open a basic RMB account with a Chinese bank to handle electronic tax payments and local social insurance and housing fund contributions.

Chinese vs international banks in China: How do they compare?

Criteria

Chinese banks

International banks
Branch network Extensive nationwide coverage, including smaller cities Concentrated in major cities such as Shanghai, Beijing, and Shenzhen
Account opening timeline Around five to ten working days for a straightforward FIE once documents are in order and the legal representative is available for in-person signing. Complex ownership structures, newly incorporated entities, higher-risk industries, or Tier-2 city branches can take materially longer. Around three to four weeks, driven primarily by group-level KYC and UBO due diligence rather than PBOC requirements. Complex group structures or higher-risk industries can extend this further.
Tax system integration Authorized for the Golden Tax System; supports tax and social insurance payments Generally not authorized; a Chinese bank basic account is still required
Domestic RMB transactions Faster settlement with local suppliers and customers Possible, but remittance can be slower and costlier
Cross-border services and English support Available at international divisions of the larger banks Core strength; alignment with group treasury and existing global relationships

How to choose a bank in China for your FIE?

There is no single best bank for all foreign-invested businesses. Companies should weigh the following criteria against their operating model:

  • Tax authorization: The bank holding the RMB basic account must be integrated with the Golden Tax System, which in practice points to a Chinese bank
  • Location: Proximity of the branch to the registered office matters, as chops, signatures, and certain transactions still require in-person visits
  • Counterparties: If most customers and suppliers are domestic, a Chinese bank enables faster and cheaper RMB settlement
  • Cross-border needs: Companies with frequent capital movements, foreign debt, or profit repatriation should assess each bank’s foreign exchange experience and service responsiveness
  • Group relationships: An existing relationship between the parent company and an international bank can justify a dual-bank setup
  • E-banking: The availability of English-language online banking, remote approval functions, and security tokens affects how easily headquarters can oversee the account

Since the basic account and the capital contribution account are usually opened at the same institution, the choice should be made before starting the account opening process. The procedure itself is covered in our companion guide on how to open a corporate bank account in China.

Post-Incorporation Compliance

Dezan Shira & Associates provides one-stop post-incorporation compliance, including bank accounts, accounting, tax, and other services.
Schedule a Free Consultation

Major banks in China: Frequently asked questions

Can an FIE hold accounts at more than one bank?

Yes. A company may hold only one RMB basic account, but it can open additional general RMB accounts and foreign currency accounts at other banks. Many FIEs keep the basic account at a Chinese bank and a settlement relationship with an international bank.

Do international banks support tax payments in China?

Generally, no. Tax and social insurance payments run through the Golden Tax System, for which most foreign banks are not authorized. Companies banking internationally open an additional local account for these payments.

Which bank is best for small and medium-sized companies?

Smaller FIEs typically benefit from a Chinese bank with a branch near their registered office, as this keeps account opening faster, fees lower, and routine formalities simpler. Service quality can vary significantly between branches of the same bank, so it is advisable to visit and compare before committing.

Do banks in China require a minimum deposit?

Requirements vary by bank, branch, and account type. Some branches apply minimum balance thresholds or charge account management fees below certain balances, so companies should confirm conditions with the specific branch in advance.

Can the account be managed from overseas?

Yes, to a large extent. Major banks offer English-language e-banking with tiered access rights and security tokens, allowing headquarters to view balances and approve transactions remotely. Certain operations, however, still require the chops or the legal representative in person.

Why get professional support choosing a bank in China?

Bank selection shapes how smoothly an FIE can inject capital, pay taxes, settle with local partners, and repatriate profits. Because requirements and service levels differ not only between banks but between branches, local knowledge is often decisive in avoiding a setup that later proves slow or costly to change.

Dezan Shira & Associates advises foreign investors on banking structures in China and coordinates account opening with Chinese and international banks. Our advisors can help you compare institutions, prepare documentation, and align your banking setup with your capital injection and treasury needs. Contact us to learn how we can support.