Why is the RMB price higher than the USD price

Why is the RMB price higher than the USD price converted at the exchange rate?

Recently, a customer asked us the same question. They saw our quote in USD, then requested to pay in RMB within China. When we provided the RMB price, it was about 13% higher than simply converting the USD amount.

Here’s the reason.

When you pay in USD, you’re typically paying for the goods outside China—it’s an export transaction, and no Chinese Value-Added Tax (VAT) applies. But if you pay in RMB inside China, it becomes a domestic sale under Chinese tax rules, and we must include VAT in the price.

So it’s not just an exchange rate calculation-it’s about where the payment happens and the taxes that apply. Want to avoid the VAT? Paying in USD outside China is usually the way to go.

Still have questions? We’re happy to help clarify what works best for your situation.