Chinese banks are becoming less and less friendly to Russian importers. Chinese banks have begun to request information from Russian payment senders about the final purposes of using products. Why the money is transferred, and who is the final recipient of the funds in China.

Chinese banking approach

The approach varies. When it comes to end users, some banks and branches are content to explain whether the item will be resold. If so, and if it will be used for civilian rather than military purposes.

Other bankers require the name and activities of the final recipient. As follows from the stories of some Russian importers who have received such demands, half of the requests ask for a guarantee that the final recipient is in no way connected with the Russian military-industrial complex.

Without this information, the bank will not unblock the transfer. Recently, Russian payments have been stuck in Chinese banks for a long time. According to statistics from the Russian bank with which we work, since March 1, no more than 25% of payments from an export-import company or manufacturer have gone to China, precisely because Chinese banks began to request names

Chinese banks needed a simple confirmation

Chinese banks have never previously required such complete information about the purpose of payment as they do now. In the spring of 2022, bankers needed a simple confirmation that the goods being paid for would not be used for military purposes. Since February, according to him, all banks require indicating the product code in international practice and the Incoterms HS code in Russia. They analyze the goods for which payment is being made, after which many refuse to pay for products subject to sanctions. But you can “play” with the codes by indicating not the one that fell under sanctions, but one that is close in value, continues the interlocutor of The Moscow Times.

Play with information about the recipients of the goods

In the product destination column, an importer of children’s toys from China writes that he will play. After Chinese banks started asking for names, it became interesting to respond to importers of sex toys and condoms from China. Now it’s no laughing matter for those who import electrical components and electrical goods into Russia, including under government contracts. And so far they still don’t have an answer on what to write in response to the bank’s request. There is also a supplier of spare parts for machine tools, because everything he imports is subject to sanctions.