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.
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.
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.
Cost of living in China chart
Prices may vary across China, depending on the product and service provider. The list below shows the average prices for Shanghai in December 2024.
Accommodation (monthly rent) | |
Three-bedroom apartment in the city centre | RMB 19,000 |
Three-bedroom apartment outside the city centre | RMB 8,700 |
One-bedroom apartment in the city centre | RMB 7,500 |
One-bedroom apartment outside the city centre | RMB 3,800 |
Food and drink | |
Dozen eggs | RMB 18 |
Milk (1 litre) | RMB 17 |
Rice (1kg) | RMB 9 |
Loaf of white bread | RMB 14 |
Chicken breasts (1kg) | RMB 24 |
Pack of cigarettes (Marlboro) | RMB 25 |
Eating out | |
Three-course meal for two at a mid-range restaurant | RMB 260 |
Big Mac Meal | RMB 41 |
Coca-Cola (330ml) | RMB 4 |
Cappuccino | RMB 36 |
Bottle of beer (local) | RMB 12 |
Utilities/household | |
Mobile phone monthly plan with calls and data | RMB 80 |
Internet (uncapped ADSL or cable – average per month) | RMB 120 |
Basic utilities (average per month for a standard household) | RMB 415 |
Transportation | |
Taxi rate/km | RMB 2.90 |
City-centre public transport fare | RMB 4 |
Petrol/gasoline (per litre) | RMB 9 |
What do expats say about living costs in China?
"The cost of living is beyond cheap for us because our living accommodations are covered under my husband’s contract. Groceries within Haiyang are very affordable. So is dining out."
Read more in our expat interview about China with Rachel.
"Depending on where you live, the cost of housing can be relatively high. Food can also be expensive if you eat at Western restaurants and shop at supermarkets with imported foods on a regular basis. However, if you opt to eat at local restaurants and shop at local grocery stores, you’ll find that you can live quite inexpensively."
Greg shares his thoughts on living costs in this expat interview about China.
Further reading
►Banking, Money and Taxes in China provides an overview of expat money matters
►For an overview of the economic climate and how to find a job, read Working in China
Are you an expat living in China?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to China. Please contact us if you'd like to contribute.
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