Those looking for a fast and convenient solution to the problem may be heartened by the fact that US money transfer giant Western Union (WU), has begun a large-scale move into the China market. WU has forged strategic alliances with the State Postal Bureau (China Post) and the Agricultural Bank of China (ABC), whose extensive network within the country will be available for money transfer.

The remittance service offered by the alliance is the first of its kind to be available on the Chinese mainland.

To use the service, the sender fills out a remittance form and pays, in cash, the amount to be transferred plus service charge. The sender then provides the receiver with the MTCN, or Money Transfer Control Number, which is the key to the security of the transaction. Using the MTCN, the receiver can pick up the remitted sum within 15 minutes. The money is usually received in local currency. Only the sender pays. There is no need for a credit card or even a bank account, a valid ID suffices for both ends of the transaction.

WU's China-based remittance service is initially restricted to US dollar transfers. Other freely exchangeable currencies should first be converted into US currency before being transferred.

To transfer a sum of US$1,000 overseas, Western Union currently charges US$20. While there are no government restrictions for sums up to US$2,000, for remittances above this figure special permission is required from relevant authorities.

China has the largest diasporic population of any country in the world, with at least 60 million Chinese living abroad. The demand for remittance services is equally impressive, with US$10 billion transferred (in both directions) last year. This is a figure that, given Western Union's 2 per cent fee, already amounts to a market worth US$200 million annually.

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