Transcription into Chinese characters is the use of traditional or simplified Chinese characters to phonetically transcribe the sound of terms and names of foreign words to the Chinese language. Transcription is distinct from translation into Chinese whereby the meaning of a foreign word is communicated in Chinese. Since English classes are now standard in most secondary schools, it is increasingly common to see foreign names and terms left in their original form in Chinese texts. However, for official and marketing use, and transliteration of names or words of Chinese minorities, transcription into characters remains very common.

Except for a handful of traditional exceptions, most modern transcription in mainland China uses the standardized Mandarin pronunciations exclusively.

Official standards Modern Standard Chinese consists of about 412 syllables in 5 tones, so homophones abound and most non-Han words have multiple possible transcriptions. This is particularly true since Chinese is written as monosyllabic logograms, and consonant clusters foreign to Chinese must be broken into their constituent sounds (or omitted), despite being thought of as a single unit in their original language. Since there are so many characters to choose from when transcribing a word, a translator can manipulate the transcription to add additional meaning. As an example, for the syllable jī, there is a choice of some 120 characters that have this as a Hanyu Pinyin reading.

In the People's Republic of China, the process has been standardized by the Proper Names and Translation Service of the state-run Xinhua News Agency. Xinhua publishes an official reference guide, the Names of the World's Peoples: a Comprehensive Dictionary of Names in Roman-Chinese ( Shìjiè Rénmíng Fānyì Dà Cídiǎn), which controls most transcription for official media and publication in mainland China. As the name implies, the work consists of a dictionary of common names. It also includes transcription tables for names and terms which are not included. The English table is reproduced below; those for a number of other languages are available on the Chinese Wikipedia.

The Basic Laws of the Hong Kong (article) and Macau (article) Special Administrative Regions provide that "Chinese" will be the official languages of those territories, in addition to English and Portuguese, respectively, leaving ambiguous the relative preference for Cantonese and Mandarin. In practice, transcriptions based on both Cantonese and Mandarin pronunciations have been used.

In Singapore, transcription standards are established by the Translation Standardisation Committee for the Chinese Media and in 2014 was moved to National Translation Committee (NTC) of the Ministry of Communication and Information. In Malaysia, transcription/translation standards are established by Chinese Language Standardisation Council of Malaysia.

Increasingly, other countries are setting their own official standards for Chinese transcription and do not necessarily follow Xinhua's versions, just as Xinhua's version differs from Wade–Giles and other international standards. For example, the United States embassy in China recommends rendering "Obama" as Ōubāmǎ, while Xinhua uses Àobāmǎ.

History Transcription of foreign terms may date to the earliest surviving written records in China, the Shang oracle bones. As the Huaxia spread from their initial settlements near the confluence of the Wei and Yellow rivers, they were surrounded on all sides by other peoples. The Chinese characters developed to describe them may have originally transcribed local names, such as the proposed connection between the original "Eastern Yi" people () and an Austroasiatic word for "sea".Schuessler, Axel. ABC Etymological Dictionary of Old Chinese, p. 563. University of Hawaii Press, 2007. However, the tendency within China was to fit new groups into the existing structure, so that, for example, "Yi" eventually became a word for any "barbarian" and the name "Yue" ( & ), originally applied to a people northwest of the Shang, was later applied to a people south of the Yangtze and then to many cultures as far south as Vietnam. Interaction with the states of Chu, Wu, and Yue during the Spring and Autumn and Warring States periods of the later Zhou brings the first certain evidence of transcription: most famously, the word jiāng (), originally krong,Baxter, Wm. H. & Sagart, Laurent.  , p. 56. 2011. Accessed 12 August 2013. derives from the Austroasiatic word for "river"..

Besides proper names, a small number of loanwords also found their way into Chinese during the Han dynasty after Zhang Qian's exploration of the Western Regions. [Shi Youwei]. ["Hànyǔ Wàiláicí", "Chinese Loanwords"]. Commercial Press (Beijing), 2000. The Western Han also saw Liu Xiang's transcription and translation of the "Song of the Yue Boatman" in his Garden of Stories. Some scholars have tried to use it to reconstruct an original version of the otherwise unrecorded language of the Yangtze's Yue people before their incorporation into the Han.Zhengzhang Shangfang. "Decipherment of Yue-Ren-Ge (Song of the Yue Boatman)". Cahiers de Linguistique Asie Orientale, Vol. 20, pp. 159–168. 1991.

The expansion of Buddhism within China during the later Han and Three Kingdoms period required the transcription of a great many Sanskrit and Pali terms. According to the Song-era scholar Zhou Dunyi, [Zhou Dunyi]. 《》 ["Fānyì Míngyì Xù", "Preface to the 'Explanation of Buddhist terms'"]. Accessed 6 November 2013. the monk and translator Xuanzang (of Journey to the West fame) handed down guidelines of "Five Kinds of Words Not to Translate" (). He directed that transcription should be used instead of translation when the words are: Arcane, such as incantations Polysemous Not found in China Traditionally transcribed, not translated Lofty and subtle, which a translation might devalue or obscure These ancient transcription into Chinese characters provide clues to the reconstruction of Middle Chinese. In historical Chinese phonology, this information is called duìyīn (); in Western Sinology, Baron Alexander von Staël-Holstein was the first to emphasize its importance in reconstructing the sounds of Middle Chinese. The transcriptions made during the Tang dynasty are particularly valuable, as the then-popular Tantra sect required its mantras to be rendered very carefully into Chinese characters, since they were thought to lose their efficacy if their exact sounds were not properly uttered.

The History of Liao contains a list of Khitan words phonetically transcribed with Chinese characters. The History of Jin contains a list of Jurchen words phonetically transcribed with Chinese characters. In the History of Yuan, Mongol names were phonetically transcribed in Chinese characters.

In the Ming dynasty, the Chinese government's Bureau of Translators ( Sìyí Guǎn) and the Bureau of Interpreters ( Huìtóng Guǎn) published bilingual dictionaries/vocabularies of foreign languages like the Bureau of Translators' multilingual dictionary ( Huá-Yí yìyǔ, 'Sino-Barbarian Dictionary'), using Chinese characters to phonetically transcribe the words of the foreign languages such as Jurchen, Korean, Japanese, Ryukyuan, Mongolian, Old Uyghur, Vietnamese, Cham, Dai, Thai, Burmese, Khmer, Persian, Tibetan, Malay, Javanese, Acehnese, and Sanskrit.

During the Qing dynasty some bilingual Chinese-Manchu dictionaries had the Manchu words phonetically transcribed with Chinese characters. The book ("Imperially-Published Revised and Enlarged mirror of Qing") in Manchu and Chinese, used both Manchu script to transcribe Chinese words and Chinese characters to transcribe Manchu words with fanqie.

As part of the promotion of Kaozheng studies in the philological field, Qianlong decided that the Chinese character transcriptions of names and words of the Khitan language in the History of Liao, the Jurchen language in the History of Jin, and the Mongolian language in the History of Yuan were not phonetically accurate and true to the original pronunciation. The histories were in fact hastily compiled and suffered from inaccurate and inconsistent phonetic transcriptions of the same names. He ordered the "Imperial Liao Jin Yuan Three Histories National Language Explanation" ( Qīndìng Liáo Jīn Yuán sān shǐ guóyǔjiě) project to "correct" the Chinese character transcriptions by referring to the contemporaneous descendants of those languages. Qianlong identified the Solon language with the Khitan, the Manchu language with the Jurchen, and the Mongolian language with the Mongolian. Solon, Mongolian, and Manchu speakers were consulted with on the "correct" pronunciations of the names and words and their Chinese transcriptions were accordingly changed. However the Khitan language has now been found by modern linguists to be a Mongolic language and is unrelated to the Solon language. The project was part of the Siku Quanshu. Qianlong also promulgated a theory that the Daur people were descended from a Khitan clan, changing the Khitan clan name Dàhè, found in the History of Liao, to Dáhū'ěr. The Chinese transcription of the Manchu clan name Niohuru (Niǔhùlù) was edited and inserted in place of the Jurchen clan name (Nǚxīliè).

"2. A learned committee, consisting of Chinese, Manchus, Mongols, western Mohammedans, etc. was appointed by the emperor K'ien-lung to revise the Yüan shi, and especially the foreign names of men, places etc. occurring so frequently in that book. These savants in their reformatory zeal, proceeded on the idea, that all the proper names had been incorrectly rendered in the official documents of the Mongols, and had to be changed. They pronounced the same verdict with respect to the histories of the Liao and the Kin. Thus in the new editions of the histories of the Liao, Kin and Yüan, all the original proper names without exception disappeared, and were replaced by names of a new invention, which generally have little resemblance to the original. For further particulars, compare my Notes on Chinese Mediaeval Travellers, p. 58, note 1. By this way of corrupting the names of the original histories, which have generally rendered foreign sounds as correctly as the Chinese language permits, the K'ien-lung editions of these works have become completely unserviceable for historical and geographical investigations. K'ien-lung was very proud of the happy idea of metamorphosing the ancient proper names, and issued an edict, that in future no Chinese scholar should dare to use the ancient names.