I read online that counterfeiters are producing more ¥50 and ¥20 bills. I've kind of gotten used to people checking out my ¥100 bills that I just got from the Bank of China but now I have to worry about smaller bills.
I did get a counterfeit ¥50 bill once, or at least my friend though so. We were buying some bike locks and getting a key made from a locksmith. I think the total was ¥30 so I gave him a ¥100 bill. After showing my friend the change, she freaked out and dragged me back to the locksmith. She said the ¥50 was fake and was going to call the police unless he gave us smaller bills. He did so without comment so maybe the ¥50 was fake.
What do you do with a fake bill? I think in China, you try to pass it off to the next guy quietly. If you bring it to a bank, they'll probably detain you and confiscate your "money" as evidence.
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