Cost of Living in China

Many expats are lured abroad to China by lucrative salary packages that allow them to live a far more luxurious life than many locals. However, most don't realise that a Western lifestyle comes at a price and expats should carefully evaluate their level of comfort, research the associated cost of living and negotiate their contract accordingly.

An expat's cost of living in China will depend on their lifestyle, how much luxury they want and how far they'll go to recreate the life they had back home.

Imported, Western-style brands and goods are significantly more expensive than locally made items, which are widely available and very affordable. Prices associated with products that aren't typically Chinese, like dairy and wine, will also be higher. Fresh produce and foods, clothing, entertainment and domestically manufactured electronics are all reasonably priced in China.

As in most destinations, the cost of living in the larger urban centres will far exceed that of the rural villages. Beijing and Shanghai, in particular, claim cost of living levels on par with many major European capitals.


Cost of transport in China

Transportation costs can be kept to a minimum for someone based in a big city like Beijing, Shanghai or Guangzhou, which have reliable and affordable public transit systems. Many people choose to cycle or ride scooters, which is often the easiest and cheapest way to travel short distances in China.

By contrast, driving in China can be very expensive, as well as dangerous. A leased vehicle can cost nearly as much as accommodation rental, petrol isn't cheap, and it is often necessary to hire a driver.


Cost of accommodation in China

Most expats will find their largest expense to be accommodation in China, especially if they're based in Beijing or Shanghai. Expats tend to congregate in the suburbs near the city centre that have higher-than-average accommodation prices.


Cost of schooling in China

Expats who relocate with children will find the costs attached to international schools in China can be astronomical. This cost increases as the child ages. As a result of this, expats should try and negotiate an education allowance into their contract.


Cost of living in China chart 

Prices may vary across China, depending on product and service provider. The list below shows average prices for Beijing in March 2020. 

Accommodation (monthly rent)

One-bedroom apartment in city centre

RMB 7,400

One-bedroom apartment outside of city centre

RMB 4,400

Three-bedroom apartment in city centre

RMB 15,700

Three-bedroom apartment outside of city centre

RMB 10,000

Groceries

Milk (1 litre)

RMB 13

Dozen eggs

RMB 13

Loaf of white bread 

RMB 14

Rice (1kg)

RMB 9

Packet of cigarettes

RMB 20

Public transportation

City centre bus/train fare

RMB 4

Taxi rate per km

RMB 2.30

Eating out

Big Mac Meal

RMB 35

Coca-Cola (330ml)   

RMB 4

Cappuccino

RMB 31

Bottle of beer

RMB 25

Three-course meal for two at a mid-range restaurant

RMB 200

Utilities

Uncapped ADSL internet per month

RMB 100

Utilities (average per month for a standard household)

RMB 450