{
  "id": 19656,
  "title": "China cuts durian settlement to 30 minutes with first outbound e-CNY payment to Malaysia",
  "url": "https://urgent.news/2026/08/01/china-cuts-durian-settlement-to-30-minutes-with-first-outbound-e-cny",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-01T03:00:14.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/banking-finance/article/3362358/china-cuts-durian-settlement-30-minutes-first-outbound-e-cny-payment-malaysia"
  },
  "original_language": "en",
  "account": "China has conducted its inaugural outbound digital yuan transaction to Malaysia, settling a 43,000 yuan ($6,360) shipment of fresh durian. Executed through China Construction Bank's Xiamen branch in collaboration with its Labuan branch in Malaysia, the payment facilitated a local importer to remit funds directly in e-CNY, the central bank's digital currency. This marked the completion of a bilateral digital-currency loop following a successful inbound trial in January.\n\nTraditional cross-border payment methods for perishable tropical goods, such as durian, have been plagued by speed and cost inefficiencies. Through conventional correspondent bank networks using Swift, foreign trade firms faced transaction costs ranging from $25 to $35 per transaction, with clearing fees up to 6 percent and settlement periods extending one to three business days, according to Xinhua Finance. In contrast, the e-CNY bilateral mechanism reduced settlement times to just 30 minutes through direct bank-to-bank ledger transfers, eliminating intermediary banks and enabling overseas recipients to convert e-CNY to Malaysian ringgit without additional charges.\n\nThe move aligns with a surge in bilateral trade of tropical fruits. Malaysian durian exports to China reached $37 million in value in 2025, up from approximately $5 million, following a trade agreement signed in June 2024. Frozen durian shipments to China amounted to nearly $202 million, with Kuala Lumpur targeting an annual export value of over 900 million ringgit ($220 million) by 2030. China has been Malaysia's largest trading partner for 17 consecutive years, with bilateral trade hitting a record $212 billion in 2024.\n\nXiamen, as a Southeast Asian hub for agricultural imports and exports, witnessed several billion yuan in cross-border digital-currency transactions by China Construction Bank in the first half of 2026. To facilitate technical integration for foreign institutions, China launched its upgraded Cross-Border e-CNY Express Service (CBETS) platform in Shanghai on June 16, accessible via a Hong Kong gateway. The platform enables overseas banks to conduct round-the-clock digital payments without upgrading existing IT systems. CBETS has onboarded 26 licensed financial institutions, covering trade, investment, and regulated digital assets in Hong Kong, Macau, Southeast Asia, the Middle East, and Latin America.\n\nMu Changchun, director general of the People's Bank of China's Digital Currency Research Institute, emphasized during the World Economic Forum's \"Summer Davos\" event in June that standardized CBETS services enhance the international applicability of the yuan and bolster risk controls for cross-border capital flows. Industry experts noted that while operational challenges such as cross-jurisdictional compliance persist, the two-way corridor provides a scalable model to diminish reliance on a single international clearing network.",
  "summary": "China has completed its first outbound digital yuan payment to Malaysia, settling a 43,000 yuan (US$6,360) shipment of fresh durian, as Beijing accelerates efforts to build a cross-border clearing network in Southeast Asia outside the Society for Worldwide Interbank Financial Telecommunication (Swift) system. The transaction, executed by China Construction Bank’s (CCB) Xiamen branch in…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Euronews Business",
        "title": "Mercedes-Benz cuts sales forecast as profit rises despite China weakness",
        "url": "https://urgent.news/2026/07/28/mercedes-benz-cuts-sales-forecast-as-profit-rises-despite-china",
        "published": "2026-07-28T08:44:35.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}