An expat’s guide to living in China

What is life like for an expat in China?

China is a ‘home away from home’ for almost one million foreign nationals. The insurgent economy represents both opportunities and challenges for newcomers. From the bustling metropolises of Beijing and Shanghai to the serene landscapes of Guilin and Hangzhou, the country offers a spectrum of experiences for those willing to embrace it.

As one of the world’s fastest-growing economies, China is a hub for global investment and entrepreneurs. Expatriates find themselves immersed in a thriving ecosystem where innovation flourishes, and opportunities abound in sectors ranging from technology and finance to manufacturing and beyond.

Navigating the intricacies of Chinese bureaucracy and business culture can be both daunting and rewarding. From securing the necessary permits and visas to establishing professional networks and understanding local customs, expatriates must adapt to a unique set of challenges. Yet those who persist could reap the rewards, with the potential for lucrative career advancements and invaluable cross-cultural experiences. In this article, we look at what life is like for expats living and working in China.

Is healthcare free in China?

While Chinese nationals and permanent residents can expect to receive free healthcare, foreign workers and tourists typically rely on private healthcare coverage. China has more than 21,000 private hospitals throughout the country, providing healthcare services to foreigners and wealthy natives alike. However, expats living outside the main urban hubs could face challenges accessing the proper care, as the system is significantly less extensive in rural areas.

Expats should consider taking out a health insurance policy. These plans offer comprehensive coverage tailored to the specific needs of expatriates, including access to private hospitals and clinics, emergency medical evacuation services, and coverage for pre-existing conditions. Comprehensive health insurance could provide peace of mind and ensure access to quality healthcare without the complexities of navigating the public healthcare system.

However, expatriates can opt to use China’s public healthcare system, which consists of government-funded hospitals and clinics. While the cost of medical services in public hospitals is generally lower compared to private facilities, expatriates may encounter language barriers and longer wait times for appointments and procedures. Moreover, the quality of care in public hospitals can vary widely, with top-tier hospitals in major cities often providing better services than those in rural areas. As one recent study reported:

“The distribution of medical resources in China is uneven. High-quality medical resources are mainly concentrated in large and medium-sized cities”.

How much tax do expats pay in China?

If you are considering moving to China, it’s crucial to understand the tax implications. Expatriates living and working in China are subject to various taxes, including individual income tax (IIT) and social insurance contributions, which can impact their overall financial situation.

IIT in China is levied on income earned by residents, including expatriates, from sources within China. The tax rates for expatriates are progressive, ranging from 3 to 45 per cent, depending on the level of income. Additionally, China employs a tax residency system based on the length of stay in the country, with different tax treatment for residents and non-residents. Expatriates who reside in China for 183 days or more in a calendar year are considered tax residents and are subject to tax on their worldwide income. Non-residents are taxed only on income derived from sources within China.

Expatriates working in China may also be required to contribute to social insurance programs, including pension, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance. The contribution rates vary depending on factors such as salary, location, and the specific policies of the employer and local government.

To mitigate the tax burden, expatriates in China can take advantage of certain tax exemptions and deductions available under Chinese tax laws. For example, certain allowances and benefits provided by employers, such as housing allowances and education subsidies, may be partially or fully exempt from taxation.

Furthermore, China has tax treaties with many countries to prevent double taxation and provide relief for expatriates. These treaties typically address issues such as the allocation of taxing rights between countries and the treatment of income earned by expatriates.

Is it cheap to live in China?

Expatriates relocating to China often find themselves with increased buying power compared to their home countries, thanks to favourable exchange rates and lower living costs in many aspects. Leveraging this enhanced purchasing ability can bring significant advantages, particularly in key areas such as property, household bills, and food expenses. Reportedly, expats can expect to enjoy living in major Chinese cities for less than USD 1,000 a month.

While experiencing fluctuations, China’s real estate market often offers properties at relatively lower prices compared to major Western cities. Expatriates can capitalise on this by purchasing or renting high-quality properties that meet their needs, whether a spacious apartment in a bustling urban centre or a serene villa in the countryside. Additionally, favourable mortgage rates and flexible financing options further enhance the affordability of property ownership for expatriates in China.

Those who enjoy dining out will be pleased to know the cost of eating out in China is often lower than in Western countries. Expats can enjoy a diverse array of culinary experiences, from street food stalls to fine dining restaurants, without breaking the bank.

What is education like for expats in China?

There are 1,300 international schools in China, collectively helping to educate more than half a million students. These schools follow foreign curricula such as the International Baccalaureate (IB), the British National Curriculum, or the American Curriculum, providing a familiar educational environment for expatriate children. International schools typically offer small class sizes, experienced teachers, and state-of-the-art facilities, ensuring a high-quality learning experience that prepares students for further education abroad or entry into multinational universities and colleges.

In addition to international schools, expatriate families may also consider bilingual or immersion programs that offer a blend of local and international educational approaches. These programs allow students to develop proficiency in Chinese language and culture while maintaining a strong foundation in their native language and academic subjects. Bilingual education can enrich students’ cross-cultural understanding and facilitate integration into the local community, equipping them with valuable skills for navigating a globalised world.

Is China a good country for expats to live and work in?

Beyond career opportunities, expatriates in China benefit from a rich tapestry of cultural experiences and amenities that contribute to a high quality of life. From vibrant urban centres teeming with cultural landmarks, culinary delights, and entertainment options to serene countryside retreats offering respite from the hustle and bustle, China offers diverse lifestyle choices to suit every preference.

China’s rapidly evolving business landscape provides ample room for professional growth and development. Expatriates in China have the chance to gain valuable cross-cultural experience, expand their networks, and enhance their skill sets in a dynamic and competitive environment. The country’s strategic focus on innovation and technology further underscores its appeal as a destination for ambitious professionals seeking to make their mark on the global stage.

Navigating the intricacies of Chinese bureaucracy and business culture can be daunting for expats. From securing permits and visas to establishing professional networks, it’s not always an easy task. But those who persevere often report improved career prospects and a good standard of living.

However, it’s essential to acknowledge that living and working in China also comes with its share of challenges. Cultural differences, language barriers, and bureaucratic complexities can pose obstacles for expatriates adjusting to life in a foreign land. Additionally, pollution, traffic congestion, and housing affordability are commonly complained of by those who take up long-term residency in the country.