You’ll quickly discover upon arriving in China that the cost of living depends greatly on whether you work for a Chinese or a Western company. The average salary for a Chinese private sector worker remains modest—entry-level roles in many sectors pay between ¥72,000–¥96,000 ($10,080–$13,440) per year, while mid-level and senior roles can reach ¥200,000–¥360,000 ($28,000–$50,400). In contrast, expat middle managers working for Western firms can command salary packages well above the local average, with total compensation often exceeding $30,000–$50,000, and senior executives earning much more.¹ ²

Everyday Life

Prices and salaries differ widely by location. For example, consumer prices in Beijing are about 35–40% lower than in major U.S. cities like New York or San Francisco, and rent, groceries, and restaurant prices are all significantly less expensive. A pint of beer in the U.S. might cost around $6, but in China, the same quantity is often less than ¥8 ($1.10). To maintain the same standard of living in Beijing as in New York City (including rent), you’d need about $3,350 in Beijing compared to $5,700 in New York City.³ ⁴

Public transportation is affordable and efficient in most major cities, with monthly passes typically costing ¥150–¥200 ($21–$28). Subways are modern and reliable, while buses can be crowded, especially in Beijing. Taxis are also inexpensive compared to U.S. cities.⁵

Expensive Items in China

Some goods are notably more expensive in China, especially imported items. Milk, cheese, and white bread cost more than in the U.S., as dairy and bread are not staples of the traditional Chinese diet. Wine and other imported foods, as well as tennis court rentals and personal care items, can also be pricey—sometimes 17% higher than in the U.S. Many expats shop online for better deals on imported goods. Shanghai is the most expensive city in China, while cities like Tianjin are considerably more affordable.⁶

School Fees

Education is a significant expense for expat families. International school fees in Shanghai can reach $30,000–$50,000 per year, often beyond the means of expats whose employers do not cover tuition. A 2025 survey found that only about 10% of firms include school fees in their expat packages. As a result, some families turn to home-schooling or local schools, though language barriers can be a challenge.⁷

Accommodation and Transport

Living in the city center is expensive, so many expats choose to live further out, taking advantage of cheap taxi fares for commuting. Transport, utilities, and property prices are all lower than in the U.S., but mortgage interest rates in China are currently around 3.5%.⁸

Inexpensive Items

Transport, utilities, and local food are all much cheaper in China than in the U.S. However, if you own property, be aware that mortgage rates are higher, and imported goods can be costly.

1. “Average Salaries in China for Locals and Expats in 2025,” FDI China, https://fdichina.com/blog/average-salaries-in-china/, accessed December 31, 2025.
2. “Salaries and Wages in China (2025 Guide for Employers),” INS Global, https://ins-globalconsulting.com/news-post/salaries-and-wages-in-china/, accessed December 31, 2025.
3. “Cost of Living in China - 2025,” Exiap, https://www.exiap.com/guides/cost-of-living-in-china, accessed December 31, 2025.
4. “Cost of Living Comparison Between Beijing and New York City,” Numbeo, https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=China&city1=Beijing&country2=United+States&city2=New+York%2C+NY, accessed December 31, 2025.
5. “China Living Costs Complete Guide 2025,” Shushanzhi, https://www.shushanzhi.com/p/china-living-costs-complete-guide-2025/, accessed December 31, 2025.
6. “Cost of Living in China in 2025,” MSA, https://msadvisory.com/cost-of-living-in-china/, accessed December 31, 2025.
7. “Cost of International Schools for Expats,” Ikky in China, https://ikkyinchina.com/2024/11/19/cost-international-schools-expats/, accessed December 31, 2025.
8. “China Loan Prime Rate,” Trading Economics, https://tradingeconomics.com/china/interest-rate, accessed December 31, 2025.