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Is it illegal for individuals to hold $20,000?
It is not illegal to abide by the Regulations of People's Republic of China (PRC) Municipality on Foreign Exchange Control and other relevant laws and regulations.

Article 3 of the Regulations on Foreign Exchange Control in People's Republic of China (PRC) refers to the following means of payment and assets expressed in foreign currency that can be used for international settlement.

(1) Cash in foreign currencies, including banknotes and coins. (2) Foreign currency payment vouchers or payment instruments, including bills, bank deposit vouchers, bank cards, etc. (3) Foreign currency securities, including bonds and stocks. (4) Special drawing rights; (5) Other foreign exchange assets.