A Foreign Invested Enterprise in China must open one and only one RMB basic account. The RMB basic account is generally used for daily business operations and tax payments in RMB. It is also the sole channel for the enterprise to withdraw RMB cash.

A Foreign Invested Enterprise in China must also open a capital account to receive capital contributions from the foreign investors. The capital account can be opened in a foreign currency, for example in USD, or in RMB. However, a USD capital account can only receive foreign investors’ capital contributions made in USD. An RMB capital account can only receive foreign investors’ capital contributions made in RMB.

Online banking facilities can be applied for the RMB basic account or RMB general settlement accounts. Usually two security keys, for example USB dongle, one with operation rights and another with approval rights will be granted for online transactions.

A foreign invested enterprise can open bank accounts in China with a foreign bank with a local presence or a Chinese bank. Foreign investors may prefer to open bank accounts with a foreign bank in China. However, since foreign banks generally have operation restrictions in China, opening bank accounts with a Chinese bank may be a better choice.