Foreign workers taking money out of China.

[雅各]

My potential employer sent me a blank contract to sign, and I asked them to fill it out properly first. (Hence I don't know the % figure in the following question). What does the % part below mean in practice, in terms of taking monies out of China on completion of a contract?

The contract says:

IV. Party B’s monthly salary will be ¥ _______ yuan (RMB), ______% of which can be converted into foreign currency monthly.

四、受聘方的月薪为人民币 元，其中 %可按月兑换外汇。

五．品放的义务：

Thanks,

雅各。

[roddy]

It's always been 70% for me, although I think there are lower rates if you have a spouse who does not work, or children, on the basis that you will be spending more of your salary supporting them, and therefore will not be taking so much back with you.

So if you are earning 10,000Y, and work for 10 months, you should be able to convert 10,000 * 10 * 0.7 = 70,000Y to foreign currency.

Converting RMB to foreign currency is a hassle - you need the contract, proof of taxes paid, and the patience to sit and watch bank clerks check the computer's maths with an abacus.

Roddy

[雅各]

Thanks Roddy.

although I think there are lower rates if you have a spouse who does not work, or children, on the basis that you will be spending more of your salary supporting them, and therefore will not be taking so much back with you. Roddy

That's exactly my situation. Wife and infant. Perhaps you saw my prev post on this forum asking about blood samples & infants? Is there any way I could find out more about the greater leniency on the 70% figure for those with family? Or, perhaps, is there a means to be able to quote it at the correct time? I'm still in Melbourne, Australia, organising everything.

So if you are earning 10' date='000Y, and work for 10 months, you should be able to convert 10,000 * 10 * 0.7 = 70,000Y to foreign currency.

Roddy[/quote']

Gee, well my anticipated salary is approx 1/3 of that amount. Hence not wanting to lose too much of it! But this will be my first post, and I have a good friend there who will be helping us to settle in.

[roddy]

I did some quick searching and found references to both 30% and 70%. Obviously the higher the better. Two references

http://www.gdin.edu.cn/eng/service/xuz.htm

and

http://www.paulnoll.com/China/Teach/teacher-contract.html

I would say ask them what they'll be filling in. If they say 70% accept it, if 30% ask them to explain, quoting the 70% references.

[雅各]

Roddy: THANKS, big time.

[roddy]

I looked into this in some detail a year or two ago, but to be honest I can't remember exactly what I found. I think the actual figure depends on your dependents and if you are classed as a 'foreign expert', or 'foreign employee'. In practice 70% seems to be normal, although to be honest if you are earning 3-4000Y and will be supporting a wife and child, I'd be surprised if you have 70% left to exchange - depends in large part on where you are living though.

The contract is only one part of it - you will also need to get a section of your foreign experts certificate filled in and stamped by the employers finance dept when you get there.

Roddy

[雅各]

We will be in 武汉.

[Angelskates]

roddy at Bank of China (Wangfujin) you don't need the contract anymore, only your passport, residence permit (with the back page stamped by employer saying the amount that you can deposit each month) and foreign experts certificate.

It takes 5 minutes. Plus 5 hours wait in line.

[雅各]

amount that you can deposit each month

Deposit? Sorry, I'm not sure how this system works. Are we talking about the same thing?

[Angelskates]

Yes, it is essentially the same thing. I deposit the money (in RMB) into my Australian bank account, thus it is converted to Australian dollars. You can change on the spot in US$ but they are not use to me!! A lot of people from the US open up accounts at Bank of China that are multi or dual currency (I think ICBC also does this and I know HSBC does), so you can deposit 70% and have it available in US$ and 30% and have it available in RMB. Friends of mine do this so they can use the same account when they go home for holidays, it is also useful if you have loans to pay back home.

[雅各]

Thanks Angelskates.

That certainly clears things up in my head a little. But is it one account or two that we are referring to?

I guess the only exposure I've had to this is to load up my Visa card into credit before departing Melbourne and then drawing Singapore dollars out of the card in Singapore. This requires the "Plus" or "Cirrus" (sp?) systems to be participating with/on the card.

What/Where is Wangfujin?

Thank you.

雅各。

[Angelskates]

Okay, well I am with CBA, so I have a cirrus keycard and a mastercard, both which you can use to withdraw RMB at major bank's ATMs.

The multi-currency thing (which I don't know allows $A btw) is one bank account with a maximum of three currencies. Usually RMB, $HK and $US.

www.hsbc.com.cn should have more info.

Wang fu jing 王府井(sorry my pinyin was previously incorrect) is a major shopping district (one of them) and also the name of a shopping district.

70% is the absolute maximum they will allow converted, however if you are working for a JV they may pay you in two currencies and deposit directly into your bank. It doesn't sound like you are though! It MAY be possible for you to ask your company to fill out both you and your spouses residence permits so you can each deposit a certain amount each month (even if only one of you is earning).

[雅各]

Thanks Angelskates,

For 王府，I'm getting "prince's residence".

Apologies for my incessant questions... What is a JV?

I've got a Qantas/Telstra Frequent Flyer Visa card, which I'm sure we'll be able to draw RMB out in China. The points have been a worthwhile exercise for us too, but I used to work for Qantas and knew how it all worked & how best to earn & burn points.

I'm not sure which city in Australia you're from, but there's a Bank of China branch here in Melbourne city.

I'll be working for a uni... the usual thing, teaching English. The main benefit is that I've got a friend there who can assist with our settling in. If it weren't for him being the drawcard, pay would be more important to us. I've only recently finished the CELTA course.

Thanks also for the advice on both my spouse and I depositing. I'll have to get my head around the system a bit to see if that is a viable loophole for us.

To spend the 30%, either a laptop or some domestic airline tickets come to mind. But Roddy (& my buddy in 武汉) give me the impression it'll be a pretty measly sum anyway.

雅各。

[skylee]

joint venture

[雅各]

Thanks Skylee!

Yes, I guess that joint venture people are the "other sort" of expats in China who are on a higher wage than those teaching English, for example!

雅各。