How to Pay Chinese Fashion Manufacturers from Spain in 2026?

Paying a Chinese fashion manufacturer is more than sending money. Spanish importers need to manage deposits, production milestones, inspections and final balances while controlling FX costs and making sure suppliers receive the correct amount on time.

This guide compares the main ways to pay Chinese manufacturers and explains how Spanish businesses can use local EUR payments, multi-currency accounts and XTransfer-to-XTransfer payments to simplify recurring supplier payments.

China remains a major sourcing market for European fashion businesses. Eurostat reported that China was the main origin of apparel and clothing-accessory imports for most EU countries in 2025 with a 31.0% share, while Spain was among the EU countries importing more than €10 billion of apparel and clothing accessories from outside the EU.

For importers, the payment decision therefore affects more than the finance department. A 1% difference in the effective exchange rate on a CNY 1 million invoice represents CNY 10,000.

The key number to compare is:

Total EUR cost = CNY invoice ÷ effective EUR/CNY rate + transfer fees + intermediary or receiving-bank charges

A low headline transfer fee does not necessarily mean a low total cost.

Payment method	Suitable for	Main cost or risk
Bank transfer / T/T	Established manufacturers and repeat orders	FX spread, bank fees and beneficiary risk
Escrow / marketplace payment	First orders and marketplace purchases	Platform fees and protection conditions
Letter of credit	Larger or higher-risk transactions	Bank, document and discrepancy fees
Online payment services	Samples and small orders	Transaction and FX costs; supplier acceptance
Card	Samples and marketplace checkout	Merchant fees and FX costs
Sourcing agent	Buyers needing local coordination	Commission, markup and payment transparency
Multi-currency payment platform	Recurring payments to multiple suppliers	FX rate, service fees and account requirements

Bank transfer / T/T

T/T remains a standard method for established Chinese manufacturers. A common structure is a deposit when the order is confirmed and the balance after production, inspection or shipping milestones.

Its main advantage is supplier acceptance. Its main weakness is that the buyer usually sends funds before receiving the finished goods.

Before paying, verify:

• Legal entity and beneficiary name

• Bank account details

• Purchase order and invoice

• Deposit and balance conditions

• Total EUR cost, including FX and bank charges

Escrow

Escrow can link payment to agreed order conditions and is particularly relevant when buying through a marketplace.

For fashion orders, define measurable conditions such as:

• Fabric composition

• Size and measurement tolerance

• Colour standard

• Packaging requirements

• Inspection requirements

• Shipment deadline

Escrow does not replace inspection. It only works as well as the conditions and evidence attached to the order.

Letter of credit

A letter of credit (LC) moves payment control toward banks and documents. It can be appropriate for larger transactions or when the buyer and supplier require documentary control.

Under UCP 600, banks examine the documents presented under the credit rather than physically inspecting the goods.

That makes the wording of the credit important. If a quality requirement cannot be evidenced by an agreed document, it should not be treated as documentary protection.

Cards and online payment services

Cards and online payment services can be convenient for samples, prototypes and marketplace purchases. They are generally less suitable for large recurring factory payments because supplier acceptance, transaction fees and FX costs can become significant.

For any payment-protection product, check whether the specific commercial transaction is covered before relying on it.

Sourcing agents

A sourcing agent can handle supplier communication, sampling, inspection and local coordination. The trade-off is an additional layer between the importer and manufacturer.

The contract should clearly show:

• Who owns the supplier relationship

• Who approves production

• How the agent is compensated

• Which FX rate is used

• Whether the importer receives the original supplier invoice

• Where the payment ultimately goes

For Spanish businesses paying Chinese manufacturers regularly, the payment workflow can be structured around three XTransfer capabilities: EUR Local Account, Global Accounts and X2X.

1. EUR Local Account for local payment infrastructure in Spain

XTransfer provides a EUR local account for Spain, allowing eligible businesses to send and receive EUR through local payment infrastructure with reduced intermediary costs and faster settlement.

Spain-specific use case:

A Spanish importer can use its EUR payment infrastructure in Spain before converting funds for supplier payments, rather than treating every funding movement as a separate international transfer.

This is particularly relevant for businesses that:

• Collect or hold EUR

• Pay Chinese manufacturers regularly

• Want a clearer EUR → CNY funding workflow

• Need to manage several supplier payments from one account

2. Global Accounts for managing multiple currencies

XTransfer Global Accounts are designed for businesses managing major currencies through one account, including EUR, CNY, USD, GBP and others across 200+ countries and regions.

Use case for Spanish importers:

If a fashion business pays suppliers in China in CNY while also dealing with suppliers, customers or marketplaces in USD or other currencies, Global Accounts can provide a centralized way to manage those currency flows.

The benefit is not simply holding more currencies. It is reducing the number of separate payment workflows finance teams need to reconcile.

3. X2X when the Chinese manufacturer also uses XTransfer

X2X is the most direct option when both parties have eligible XTransfer accounts.

XTransfers between XTransfer users can arrive near-instantly, 24/7, with zero transaction fees.

Use case:

If a Chinese manufacturer already has an XTransfer account, the Spanish importer can use X2X rather than setting up a separate traditional bank payment for that transaction.

This can be particularly useful for repeat deposits, production milestones and final balances.

Important: X2X is for transfers between eligible XTransfer users. If the supplier does not use XTransfer, the importer can use the relevant China supplier payout route instead.

XTransfer at a glance

XTransfer capability	What it does	Spain → China use case
EUR Local Account	Local EUR payment infrastructure in Spain	Fund and manage EUR before supplier payment
Global Accounts	Manage supported global currencies	Handle EUR, CNY, USD and other currency flows
X2X	Transfer between eligible XTransfer accounts	Pay Chinese manufacturers that use XTransfer

XTransfer's China payment service supports CNY settlement to China-based suppliers' designated bank accounts, subject to account, beneficiary and compliance requirements.

A reliable payment process should connect procurement and finance rather than treating payment as the final step.

Step 1: Confirm the supplier

Verify the manufacturer's legal entity, bank details, invoice and contract before the first payment.

Step 2: Define the payment milestone

For example:

Purchase order → deposit → production → inspection → balance → shipment

The payment schedule should match the commercial milestones.

Step 3: Compare the effective FX cost

If the supplier invoices in CNY, compare the EUR-to-CNY cost.

If the supplier invoices in USD, compare the EUR-to-USD route.

Avoid adding an unnecessary currency conversion simply because it is available.

Step 4: Match the payment method to the order

• Established supplier → T/T or an online B2B payment platform

• First marketplace order → escrow where available

• Large or documentary-controlled transaction → LC

• Recurring multi-supplier payments → multi-currency payment infrastructure

• Supplier also uses XTransfer → consider X2X

Step 5: Reconcile after settlement

Check three numbers:

1. Amount debited from the Spanish business

2. Amount converted and sent

3. Amount actually received by the manufacturer

Keep the payment reference linked to the invoice, purchase order and production milestone.

Do not compare payment methods on speed alone.

Use these five questions:

1. How much EUR will the payment actually cost?
Include FX spread, transfer fees and any intermediary or receiving-bank charges.

2. How much will the manufacturer receive?
The supplier's net CNY amount matters more than the fee shown on the sending side.

3. Can the supplier receive the payment method?
Confirm the beneficiary's bank, currency and legal entity before payment.

4. What happens if there is a dispute?
Payment infrastructure does not replace a contract, inspection or documented specifications.

5. Can finance repeat the process?
For businesses paying several manufacturers every month, reconciliation and approval workflow can matter as much as the transaction fee.

Can Spanish businesses pay Chinese manufacturers in CNY?

Yes. Chinese manufacturers commonly invoice and receive supplier payments in CNY. XTransfer's China payment service supports CNY settlement to China-based designated bank accounts, subject to applicable account and transaction requirements.

Is paying in CNY cheaper than paying in USD?

Not automatically. The relevant comparison is the total EUR cost of the payment. If the supplier's contract is already denominated in CNY, compare the effective EUR/CNY conversion cost rather than adding an unnecessary EUR→USD→CNY conversion.

Do Spanish importers need a separate bank account in China?

Not necessarily. The payment method determines the account structure. XTransfer's Spain service provides an EUR Local Account, while its global payment infrastructure supports supplier payouts to China.

What is the difference between XTransfer's Local Account, Global Accounts and X2X?

Local Account is for local-currency payment infrastructure, such as the EUR Local Account available for Spain. Global Accounts are designed to manage supported currencies and international payment flows. X2X is specifically for transfers between eligible XTransfer accounts.

Can I use X2X to pay a Chinese manufacturer?

Yes, when the manufacturer has an eligible XTransfer account. X2X can be regarded as near-instant, 24/7 transfers between XTransfer users with zero transaction fees.

What documents should I prepare before paying a new manufacturer?

At minimum, keep the supplier's legal-entity information, invoice, purchase order, beneficiary details and agreed payment terms. For fashion orders, also keep the approved specifications and inspection requirements.

This article is compiled from publicly available sources and interview content for informational purposes only and does not represent the official views of XTransfer. XTransfer accepts no liability for any damages arising from reliance on this content.