There are several advantages of using traveler's checks in China. Not only do they command a higher exchange than cash but they are also more secure and provide a convenient backup in case your money is lost or stolen. While they may be used in a variety of circumstances, unfortunately, they cannot be used everywhere.
Traveler's checks can be exchanged for Chinese currency at certified foreign exchange centers or licensed money changers. These are often found at points of entry into China such as the airport, border train stations and seaports. They are also widely available in the bigger cities and popular tourist areas such as Hong Kong, Beijing and Shanghai.
You can also cash your traveler's checks at most branches of China's largest banks, such as the Bank of China or the China Construction Bank. Both banks have branches in almost every city. The Industry and Commercial Bank as well as the Agricultural Bank of China are able to exchange foreign currencies so they may also provide traveler's check exchange services.
Most top-end or international hotels can exchange traveler's checks. Similarly, most tourist hotels in the larger cities (Beijing, Shanghai, Hong Kong) will also provide this service. Be aware, however, that many hotels charge a small commission to cash traveler's checks.
There is no difference between how traveler's checks are used in China and elsewhere (with proof of identity and a signature). The exchange rate is generally the same throughout China, although Hong Kong and Macau have separate rates of exchange from each other as well as with mainland China. All major brands of traveler's checks, such as American Express, Thomas Cook, Citibank and Bank of Tokyo, are accepted.
Keep in mind that traveler's checks are rarely accepted at restaurants, stores or gift shops. Moreover, while traveler's checks in all denominations may be accepted in the larger cities, the preference is for larger denominations. In smaller cities traveler's checks in smaller denominations may not be accepted. Never presign your traveler's checks before exchanging them and be careful to sign as close to the original signature as possible to eliminate confusion of whether the signatures match.
