The premise is that, as you said, there is no handling fee for swiping your card through UnionPay, and it will be automatically converted and settled according to the exchange rate between RMB and Euro when you swipe your card, which is reflected in the amount of RMB consumed in your card. As you said, as long as RMB is directly deposited in the card, it is correct.

If it's MasterCard or VISA, it's not like this. In that case, there will be an exchange fee when you swipe your card, and there will be a problem with the exchange rate of purchasing foreign exchange when you repay.