Cost of Living in China

Many expats move to China for high-paying jobs that let them enjoy a more luxurious lifestyle than many locals. That said, living a Western lifestyle in China can be expensive.

The cost of living in China depends on your lifestyle, how much luxury you want, and how closely you try to replicate your life back home. Generally, living in big cities is much pricier than living in smaller towns or rural areas.

Cities like Beijing and Shanghai are especially pricey, with the cost of living similar to major European capitals, depending on how you live. According to Mercer's 2024 Cost of Living Survey, Shanghai ranked 23rd and Beijing 25th out of 226 cities worldwide. While cities like Shenzhen and Guangzhou are cheaper, they still ranked 34th and 71st, showing that urban living in China isn’t necessarily cheap.

Cost of accommodation in China

If you're based in Beijing or Shanghai, the cost of accommodation in China will likely be one of your largest expenses if your employer does not provide housing. Most expats live in suburbs close to the city centre, where rental prices are higher than average.

Apartments usually come furnished, which can make the rent steeper. You’ll also need to budget for real estate agent fees when searching for a place. On top of rent, you’ll need to pay for utilities like electricity, gas, and internet, as these costs are typically not included in the rent.

Finding Accommodation in China

Cost of transport in China

The cost of transport in China can be affordable if you live in a big city like Beijing, Shanghai, or Guangzhou. These cities have reliable and affordable public transport. Many people also choose to cycle or ride scooters because it's a simple and low-cost way to travel short distances.

On the other hand, driving can be expensive and risky. Renting a car might cost almost as much as your rent, and petrol prices are high. Plus, you'll often need to hire a driver who is familiar with the local traffic rules and driving habits.

Getting Around in China

Cost of groceries in China

Groceries in China are usually quite affordable. Prices depend on where you live, but you can find plenty of fresh fruits, vegetables, meat, and dairy at local markets and supermarkets.

There are also lots of packaged foods, snacks, and desserts to pick from. If you like cooking at home, you’ll find a variety of spices, sauces, and ingredients to try out.

That said, imported items like cheese can be pricier. The good news is that there are typically local alternatives that are both delicious and budget-friendly.

Cost of education in China

Public schools in China teach in Mandarin Chinese, making them largely unsuitable for expat children. As such, the cost of education in China can be steep, since most expats send their children to international schools.

International schools frequently have excellent facilities and high teaching standards, but tuition fees often go up as your child gets older. If your child is academically gifted, you can also look into scholarships offered by some international schools. Scholarships can help lower the cost of tuition. Some employers also provide education allowances to make the move easier for expat families.

Finding a School in China

Cost of healthcare in China

The standard of healthcare in China varies significantly, so most expats prefer using private healthcare services. To access these services more easily and affordably, it’s important to get private health insurance. Many expat employers include private health insurance as part of the employment package.

If you have to secure your own coverage, the cost of private health insurance will vary depending on how comprehensive your coverage is, how many people are covered, and their ages. Other factors that are considered include pre-existing medical conditions and lifestyle habits, such as smoking.

Hospitals, Health Insurance, and Pharmacies in China

Cost of entertainment and eating out in China

Entertainment and eating out in China can be a delightful experience, with various options to suit all budgets. From street food stalls to high-end restaurants, the culinary scene in China offers something for everyone. Eating out at local restaurants can be very affordable, especially when compared to Western countries.

Street food vendors offer cheap and tasty options if you're on a tight budget. There are also many upscale dining experiences, with options ranging from regional Chinese cuisine and international fusion to Western-style restaurants.

In terms of entertainment, there is no shortage of options in China. The country boasts a rich cultural heritage, which you can explore through music, dance, and theatre performances. China also has a vibrant nightlife scene, with plenty of bars and clubs catering to different tastes. Expats can also take advantage of outdoor activities such as hiking, cycling, and water sports, which are typically free or low-cost.