China has completed its first outbound digital yuan (e-CNY) payment to Malaysia, settling a shipment of fresh durian valued at 43,000 yuan (approximately HK$49,921). The transaction, conducted through China Construction Bank’s (CCB) Xiamen branch in collaboration with its Labuan branch in Malaysia, enabled a local importer to make payment directly using China’s central bank digital currency. This milestone follows a prior inbound trial in January, marking the establishment of a bilateral digital-currency loop between the two countries.
The implementation of the e-CNY payment mechanism aims to address long-standing challenges in cross-border settlements for perishable goods such as durian, where speed and cost efficiency are critical. Traditional payment systems relying on correspondent banks and the Society for Worldwide Interbank Financial Telecommunication (Swift) network have posed significant limitations. According to Xinhua Finance, foreign trade companies typically face fees ranging from US$25 to US$35 per transaction, alongside clearing charges exceeding 6% and settlement delays of one to three business days.
In contrast, the e-CNY arrangement reduces clearing times substantially, with transactions settled within 30 minutes via direct ledger transfers between banks. This process sidesteps intermediary banks and allows beneficiaries in Malaysia to convert e-CNY directly into local ringgit without incurring additional fees.
The adoption of digital yuan payments coincides with robust growth in Malaysia-China bilateral trade, particularly in tropical fruit exports. Fresh durian shipments from Malaysia to China reached US$37 million in 2025, up markedly from about US$5 million prior to a trade agreement signed in June 2024. Meanwhile, frozen durian exports neared US$202 million, with Malaysian authorities targeting an annual export value exceeding 900 million ringgit (around HK$1.7 billion) by 2030.
China has maintained its position as Malaysia’s largest trading partner for 17 consecutive years, with bilateral trade hitting a new high of US$212 billion in 2024. The city of Xiamen, a key Southeast Asian agricultural import-export hub, facilitated several billion yuan in cross-border digital currency transactions during the first half of 2026 through CCB operations.
To support broader adoption of e-CNY for international transactions, China launched the commercial operation of its upgraded Cross Border e-CNY Express Service (CBETS) platform in Shanghai in mid-June. Incorporating a Hong Kong access point, the platform allows overseas banks to process digital payments around the clock without requiring overhaul of existing IT infrastructure. At launch, CBETS partnered with 26 licensed financial institutions across Hong Kong, Macao, Southeast Asia, the Middle East, and Latin America, enabling a variety of transactions including trade, investment, and regulated digital assets.
Mu Changchun, director-general of the People’s Bank of China’s Digital Currency Research Institute, highlighted at the World Economic Forum’s Summer Davos in June that standardized CBETS services enhance the international use of the yuan while improving risk controls over cross-border capital flows.
Despite remaining challenges such as cross-jurisdictional compliance and regulatory coordination, industry experts have noted that the bilateral digital currency corridor establishes a scalable alternative to reduce reliance on traditional international clearing networks like Swift.