China just made a cross-border payment bypassing SWIFT
What's the story
China has successfully completed its first outbound digital yuan payment to Malaysia, settling a shipment of fresh durian worth CNY 43,000 ($6,360). The transaction was carried out by the Xiamen branch of China Construction Bank (CCB) in collaboration with its Labuan branch in Malaysia. This marks a major step in China's efforts to establish a cross-border clearing network in Southeast Asia, independent of the SWIFT system.
Efficiency boost
Clearing times reduced to just 30 minutes
The new payment system allows local importers to pay directly in e-CNY, China's central bank digital currency.
This bilateral digital-currency loop was first tested in January.
The traditional method of cross-border settlement through SWIFT's correspondent bank networks was costly and time-consuming for perishable goods like durian.
Now, with the e-CNY bilateral mechanism, clearing times have been reduced to just 30 minutes via direct bank-to-bank ledger transfers.
Cost reduction
New system eliminates the need for intermediary clearing banks
The new payment system also eliminates the need for intermediary clearing banks, making it cheaper for overseas recipients.
They can convert their e-CNY directly into Malaysian ringgit without any extra fees.
This comes as a major relief for businesses that were previously paying $25 to $35 per transaction with clearing fees of over 6% and settlement times stretching one to three business days.
Trade growth
Major boost for durian trade between China and Malaysia
The new payment system comes at a time when bilateral tropical fruit trade is booming. Malaysian fresh durian exports to China skyrocketed to $37 million in 2025, up from some $5 million. This massive increase came after a trade protocol was signed in June 2024.