In China the banking system is completely under government control with the Chinese yuan serving as the basic unit of currency (8.70 yuan equal U.S.$1). The People's Bank of China is the central financial institution and the sole source of currency issue. China's international accounts and foreign currency arrangements, however, are primarily the concern of the Bank of China, which has forty-nine branches, including offices in Hong Kong, Singapore, and London. In addition, China has four other banks: the Agricultural Bank of china, the People's Construction Bank of China, the of China, and the Bank of Communications of China, which is responsible for global communications and international business transactions. The common payment schedule for a shipment of telecommunications equipment in China is a reverse version of the common international schedule. In most countries, the purchaser makes a down payment on the equipment, after which the vendor matches the down payment with a!
             bank guarantee. The bank guarantee ensures that the purchaser will be refunded the amount of the down payment should the vendor fail to supply the equipment according to the agreed-upon terms. In China, the American Communication Services must first submit the bank guarantee to the Bank of China, after which the customer must be notified and asked for a down payment. Customers will not make a payment unless the American Communication Services has already submitted the bank guarantee. China is not a member of the International Chamber of Commerce and, therefore; is not subject to the Unified Customs and Practices regarding international trade payment. For example, Chinese banks usually release funds, not at sight, but only after the headquarters office in China receives and examines all of the trade documents. UCP rules require at sight payments from the branch office overseas upon receipt of the full set of required trade documents. Financing is the key cons...