So you are coming to China, or you’ve just landed. It’s all new, unusual and confusing. Your mind is buzzing with questions. What’s a laowai? What’s an ayi? What do I do if I fall ill ? How much tax do I pay? How do I get my money out? Where can I get my favorite perfume/beer/chocolate/music?
We would recommend, firstly, that you stick to reliable and well-known sources – companies, websites, magazines or books that have been around for a good few years and have established a good reputation. Our forums are a good place to get reliable advice for exaple: http://www.chinaexpat.com/forum. Secondly, do look for “a second opinion” even amongst these – even the best sources (even China Expat!) cannot be an expert on everything. And thirdly, at the risk of stating the blindingly obvious, apply your own judgment – things that are logical in your country are often perfectly logical here, notwithstanding all those articles arguing China is “different”. Yes, it is to some extent, but don’t leave your common sense at the airport!
Life in China can certainly be exciting, frustrating, wonderful, exasperating, fantastic, all the words for good and bad are applicable. You must be ready to adapt and bend, and be resilient. Flexibility is the key (but do not compromise on business and personal ethics) – open your mind, set aside your preconceptions, and enjoy the experience!
Please note that on issues such as visas and tax we can only provide the most basic information here – these are complex areas and you should take expert professional advice to deal with your own particular circumstances.To enter for a short business trip, you require an “F” visa, which can be obtained from the Chinese Embassy/Consulate in your country. Note that this generally requires an invitation from a Chinese-based entity.
Note that it is much easier to obtain an “F” visa in Hong Kong than outside China – travel agents will do it although costs and validity vary depending on your nationality. Take advice !
If you are staying somewhere other than a hotel, you must register with the police. Your landlord or company can assist you.
To work long-term for a Chinese entity you will generally require a “Z” visa. To obtain this, you must take a health check, and obtain a work permit and alien employment certificate from the Labor Bureau – then you will be issued a residence permit and “Z” visa by the Public Security Bureau.
2) How do I find somewhere to live ?
Of course this depends on your personal circumstances, and where you are based. In the major expat destinations there are a wide range of possibilities from high-end apartments and houses, to mid-range flats, serviced apartments and cheaper options. Beijing and Shanghai, in particular, offer some interesting possibilities in terms of attractive older (but modernized) properties. Further afield, quality tends to drop away, although of course so does price. Shop around, look at a variety of agent’s websites, and think laterally – there may be some unusual properties to make your stay a unique experience.
3) What medical checks should I have before I come?
Visit your doctor for a checkup and vaccinations. Ask for a health summary and their email address if you have chronic or reoccurring problems. Vaccinations like Hepatitis A and B need six months to be completed. Make sure your insurance covers basic outpatient visits, hospital admissions and emergency evacuations.
Bring a sufficient supply of your favorite regular medications, such as pain and fever medications, decongestants, anti-diarrhea medications, condoms, tampons, and birth control pills. All prescription medicines should be carried in their originally labeled bottles, with the reasons you are taking them.
4) Remember that China does not have a “national health service”, and even local people have to pay for medical care. In the big cities foreign-funded medical centers and hospitals are available, providing a good level of care. Further afield, facilities are limited to domestic hospitals and you may wish to consider this, especially if coming with children.
Once here you should:
1. Keep an emergency list ready.
2. Get vaccinations for whatever you missed.
3. If you will be living here for more than a few months, identify one health care facility and one doctor as your primary care provider.
4. If you cannot afford to be sick, try to live as healthily as you can!
5. In case of life-threatening emergencies, consider going to a foreign facility – make sure you know where these are. Bear in mind that local ambulance services do not speak English and do not receive the same traffic priorities as in western countries.
6. Ask for copies of all lab data, radiology films and names of medication and diagnosis if you are in a local hospital.
Is China a risky place for individuals?This depends on where you are, and on your own attitude to risk. But part of China’s attraction is its relatively low level of political risk. The country is stable (notwithstanding some very localized disputes, largely over land) and we judge the risk of significant unrest posing a risk to foreigners to be low. Equally, central Beijing and Shanghai are relatively safe from crime, apart from petty theft/pick-pocketing, which you will find in any major city. Shenzhen seems to have a higher number of this sort of incident. Take sensible precautions!
However, health risks are worth considering – environmental standards leave something to be desired, and air pollution is widespread. Anyone with respiratory difficulties might have problems. And parents should monitor levels of potential pollutants in their children. Business risk is another issue altogether, and is covered extensively in the June 2005 issue of our sister publication China Briefing (www.china-briefing.com ), see archives section.
5) What tips do you have for the actual move ?
Most moving companies recommend that you bring some personal things – photos, pictures, books and other artifacts. Having items from your previous life will help you get over the rough spots, and bring calm and a sense of familiarity.
It’s nice to come with some food items and toiletries from home – spend that last afternoon at the supermarket stocking up. Of course these will not last for ever, although in Beijing and Shanghai (and increasingly in second tier cities) there are reasonable Western supermarkets such as Carrefour and Parkson. Further afield you may have to ration yourself or rely on friends and relatives sending you “goodie boxes”.
Settling in
6) How do I set up a bank account? Any other money issues ?
The major international banks here can set up foreign currency accounts. For an RMB account, all you need to open one is your passport and a very small deposit, and to fill in a form – usually in Chinese so take a friend to help you. Banks here do not issue cheques. You will receive a card that is a debit card only, also allowing you to take money from relevant ATMs.
Most foreign debit cards will work in ATMs but not necessarily in all banks all the time. Bank of China and ICBC seem to be the most “plugged into” the foreign banking systems. Western credit cards can be used at major hotels, stores and restaurants but not much locally.
If you are going to pay bills online from your home bank account, set it up before you leave home. Think about appointing a lawyer back home with “power of attorney” in case unexpected issues come up while you are away.Overall, you will find China a much more cash-based society than you are used to.
7) Can I convert RMB back into hard currency?
If you do have RMB savings, you can send them home. You need to show your IIT tax paid receipt to the State Administration of Foreign Exchange, who will issue you with permission to convert your RMB to foreign currency.
8) What are taxis like?
Most taxi drivers (even in the big cities) do not speak or read English. The best solution is to have the address of your destination written in Chinese. It’s worth routinely collecting business cards for key offices, hotels, restaurants etc, or they can be obtained form relevant organizations’’ websites.
In China, there is no need to tip – indeed they probably get very embarrassed if you try!
Most taxi drivers are honest and polite, but like everywhere else there are always some poor drivers who drop you off at the wrong spot or refuse to take you to your destination. Be wary of people offering taxis at airports and railway stations, away from the designated taxi ranks – they are likely to overcharge. Use the proper ranks, and find out in advance the usual rates downtown – e.g. say RMB130 in Shanghai from Pudong airport or RMB80-100 from Beijing Capital.
9) How do I get a driving license?
You must first take your ID card/passport to an office usually run by the Vehicle Management Department of the local Public Security Bureau. You will take a physical examination then sign up at a local driving school.
The PSB will grant a learning certificate to qualified applicants who have passed examinations on traffic regulations, and a full driving license to holders of the learning certificate who pass driving tests with a driving school.
10) What about web connections?
ADSL connections are simple to set up and cheap. Apply at the local telephone company office (take a Chinese speaker with you). Generally you will pay about RMB100-200 for installation and between RMB100-300/month for unlimited access. The exact charge will depend on where you live and the amount of bandwidth you require.
If you do not want to install the net at home, or if you are out and about, there are many Internet cafes offering fast access (mostly designed for young gamers!) at around RMB4/hour. The downside is that they can be a bit noisy and smoky!
Bear in mind that access to a fair number of websites is blocked by the authorities – notably some key western media (including the BBC) and others based in Taiwan. Google.com and Hotmail has been patchy at times in 2006.
11) How do I use a mobile phone?
There are two ways of getting a local cell phone number – both involve going to a cell phone store, and it is very helpful to have a friend who speaks and reads Chinese.
You can sign up for a plan that is billable to your home or office. If you do this you must put down a hefty deposit and sign a contract.
The other way is much simpler and cheaper. You sign up for a number and get a SIM card for your phone, with money on it, and you add more money as you need it with cards available everywhere. You do not have to sign a contract nor put down a deposit. However, note that if you do this first of all in, say, Shanghai, you can only add extra money with cards bought in Shanghai.
Do not throw away the box and related paperwork when you buy a SIM card. If you keep it, then if you lose the phone you can get the SIM card replaced. Some companies (but not all) will also be able to tell you the stored numbers.
IP cards to call abroad can be found in many small shops.. Prices vary according to where you are calling, of course. The face value of these cards is generally RMB100, however they can often be purchased for RMB30. Alternatively, use online services such as Skype.
Actual cell phone handsets are relatively expensive here.
12) What are postal services like?
Letters and parcels by conventional post will take maybe 10-14 days by airmail to Europe or the US. Parcels are awkward – they must be wrapped at the post office as the officials have to see the contents. The fastest way of sending documents is EMS. It takes about four working days to Europe or the US (maybe more from provincial Chinese cities). The lowest price is RMB180, increasing with the size and weight.
For incoming mail it is useful to have a Chinese address. But even with an address written in English most mail gets through. Parcels usually need to be collected at the post office and this normally needs you to show your passport. Be glad there is email now!
13) Where do I get foreign newspapers and TV?
Most five-star hotels, and Friendship Stores in large cities, will stock newspapers and magazines such as the South China Morning Post, Wall Street Journal, Financial Times, Time, Economist, and various European papers and magazines, etc but these are rarely available elsewhere. China Daily and Shanghai Daily are reasonable but are of course Chinese government publications. Foreign TV such as the BBC, CNN are available via cable feeds but are occasionally censored if there is politically sensitive coverage. CCTV9 is the only English language nationwide domestic channel. Again, be glad of the Internet now.
14) What about getting nice clothes here?
Clothing of all kinds is much less expensive. Should you want to have clothes made it is best to bring a garment to copy – so even if you plan on getting a new wardrobe, it may be best to bring the old clothes and get rid of them as the new clothes are made. It also works well to bring pictures of what you like. But note that some fabric available here is not as high quality as, for example, in Hong Kong – you can always buy material there but get it made up in the mainland.
15) For the ladies – can we find good beauty products and beauty salons?
It is always stressful trying out a new hairdresser. Should you have your hair colored or treated bring the formula from your hairdresser and they will try to match it. One of the wonderful things is the low price of indulgent beauty! Pedicure, manicures, massages are all a fraction of what they cost in the west. You should take care, however, to pick a salon that is hygienic and relaxing. In the big cities, most western skin care and cosmetic brands are available although be conscious that specific products may vary from what you are used to according to local tastes.
16) What is an Ayi?
An ayi is a part-time maid. She will carry out tasks such as cleaning, washing clothes and dishes, possibly cooking. Typically she will visit your residence while you are at work or she may even live with you, especially if looking after children. An ayi that simply comes while you are at work may cost about RMB70 per visit, while one who lives in obviously costs more.
If you live in a serviced apartment, such services can be obtained from the management office. Remember, you are putting the safest method, as you are putting a considerable amount of trust in your ayi. The only thing stopping her from walking out with your possessions is her good nature and ongoing employment. It is therefore advisable to treat (and pay!) her well, and of course not to put too much temptation in her path.
17) What personal taxes must I pay?
This will depend on your length of stay and employment situation. In all cases you should take professional advice, but the ”headlines” on Individual Income Tax (IIT) are as follows:
Expatriates on extended business trips
If you are sent by your organization and your salary is paid off-shore, and you spend more than 183 days here in a calendar year, than you pay IIT based on the days you spend in the country. So if you spend 184 days within a calendar year, than you would have to pay taxes on all income related to your work performed here.
Foreigners working for legal enterprises
Without going into too many complicated calculations, if you hold positions such as the Chief Representative of a Representative Office or the General Manager of a Limited Company, Wholly Foreign Owned Enterprise or a Joint Venture anywhere, then you are subject to IIT from the day you start work.
Should you not actually visit within a calendar year but are still acting as the Chief Representative of a Representative Office, then zero tax filings should still be made monthly to the local authorities. Some locations may not require this.
According to the law you should declare the full salary for the position. In practice, however, it is common to see foreigners declaring an “arranged” fixed salary for their China position (with the rest being paid off-shore) and thus lowering their full tax liability. This practice is illegal so we would advise against it!
Foreigners holding concurrent posts both here and elsewhere
You will be liable as above for the time you spend here, but most countries will have “double taxation” treaties to ensure you are not taxed twice over in either location!
China residency status and IIT on your worldwide income
If you have stayed here for more than five years (without residing outside the PRC for more than 90 days cumulatively each calendar year or 30 consecutive days always within a calendar year), you have to pay IIT on your worldwide income without limitation of source.
However, it is rare, if not unknown, for the tax authorities to actually apply this rule, and most expats simply count their days give themselves a month out every five years!
For more detailed advice, please contact Dezan Shira Associates, China national tax advisors, at www.dezshira.com
18) Things that might go wrong: what are common scams?
There are various scams designed to separate you from your money. Here are a couple of the most common:
1. The teahouse scam : A couple of young (usually female) students approach a foreigner to practice their English skills. They suggest a visit to a traditional teashop. After ordering a pot of tea the foreigner is presented with a bill sometimes exceeding RMB1,000.
2. The art exhibition scam: Some students encourage you to visit their art gallery where their “teacher” is displaying his collection. They will try to sell you artwork, starting at about RMB 4,000. In the end, if they cannot sell any of their machine-made “artwork” they will ask for a donation to their gallery. These scams are particularly prevalent around the Forbidden City and Tiananmen Square area, and the Bund end of Nanjing Lu in Shanghai.
19) Things that might go wrong – what do I do I have something stolen?
If you have something stolen you can probably wave goodbye to it forever – the police are highly unlikely to recover it. However for insurance purposes you should report the theft. There are police stations and sub-stations all over urban areas (find your nearest one soon after your arrive). Take a Chinese-speaking friend and some identification for yourself and your residence, and have them make an official report.
Theft from residences is a relatively rare phenomenon, however pick pocketing is rife. Be especially vigilant in buses, bars and around railway stations. If you are a long way from home or carrying a large amount of money always try to carry your cash in two separate locations. Inside or zipped pockets are recommended. Use lockable hard-case baggage when traveling.
20) Things that might go wrong – what should I do if I get in trouble with the police?
We would hope that China Expat readers are law-abiding citizens and will avoid getting involved in situations that invite PSB attention! If you commit a crime then you will face the consequences here as you would anywhere else. It is not advisable to try to use the fact that you are foreign to attempt to avoid punishment. Make sure you know the law – ignorance is not a defense.
However, if you find yourself in discussion with the PSB try to get a Chinese speaking friend – ideally someone of standing – involved to translate and if necessary to negotiate on your behalf. If it gets worse, then contact your consulate – it is perhaps wise to have the relevant phone numbers stored on your phone (including out-of-hours emergency numbers if they exist). They can intercede and/or arrange legal representation if it goes that far.
Traveling Around
21) What’s with all those strange holiday arrangements?
For various historic and cultural reasons, holidays are concentrated on three “Golden Weeks” – Chinese New Year (Spring Festival) in January or February (it moves every year due to the lunar cycle) ; the Labour Day holiday, first week of May ; and the National Day holiday, first week of October. Everyone is off during these periods (they are statutory holidays) and business effectively shuts down, apart from retailers and tourism, for whom these are boom periods ! You have to take all this into account when planning your business’ annual cycle – don’t plan any significant meetings, Head Office trips or similar events for these times, and expect a downturn in day-to-day business for a few days either side as well. You may have to work the weekends before and after too !
Chinese employees, especially in foreign-invested businesses, are now beginning to get additional holiday time as well, and of course many expats leave China in the summer and over Christmas and western New Year.
22) What is the best way to book hotels and flights?
Book in advance. It is much harder to negotiate a good price when you just turn up at an airport or hotel (list prices are double the actual amount that the hotels/airline companies will often offer for advance bookings). There are some good web-based services, the best probably being elong.com and ctrip (both in English and Chinese). Booking in advance through these will save 30-40% off rack rates.
23) What would be considered the most luxurious travel and accommodation? Or the budget type?
Luxury accommodation is typified by the Shangri La chain found in most large cities. Standard rooms can normally be reserved from around RMB1,000, although prices can be higher at peak times. Business-class domestic flights can be purchased for around RMB3,000. “Soft-sleepers” on trains will normally cost around RMB450/night.
As for budget travel, it is really a case of how low you want to go. We have stayed in hotels costing just RMB20 per night, and traveled hundreds of kilometers on hard seats for RMB30. Using transport and hotels offering a modicum of comfort, a night on a train using a “hard bed” will normally cost between RMB200-350 Staying in reasonable “3-star” hotels will generally cost between RMB200-400 depending on the city.
24) Can I get frequent flyer deals on Chinese airlines?
Domestic airlines do have their own programs, but if you insist on always flying with the same airline you restrict your ability get the cheapest fare and best time slots…until these programs are merged it is probably not worth the trouble.
25) Is it dangerous to travel to remote areas?
Like most countries, once you get off the beaten track you need to be more alert and sensible. It’d be wise to travel in a group, not alone, and not to take chances. But in smaller towns, local people are usually friendlier and very caring towards foreign visitors, although the hygienic conditions would be a sacrifice. Check your country’s embassy website for up-to-date advice on health and potential political risks.
26) Can I just travel to any where without any special permit once inside China?
Basically yes, except to Tibet where ordinary travelers do need a special permit. Foreign journalist and anyone holding a diplomatic ID will not be issued an entry permit. Everywhere in China, you should always have a valid visa – remember you need your passport to check into hotels and fly on domestic airlines.
Some extremely remote areas require you to register with the local Public Security Bureau before departure. This is really for your own safety in case you go missing or face some other problem. You may find you are refused access to areas around major military facilities.
27) Where are the best domestic beach holiday resorts?
In South China, Sanya in Hainan is probably your best bet as well as beaches in Shenzhen and Xiamen. In North China, Qingdao is very famous for its beaches, and to a lesser extent Dalian. In between there isn’t much!
The Natives are friendly
28) Do I have to learn the language? How do I learn about local culture?
the language ? How do I learn about local culture? We put these two together because the answers are inextricably linked. Your ability to learn the language will of course depend on your situation, background, inclination, and time available. But even a little knowledge can make an enormous difference in enjoying time with colleagues and friends, and getting some insight into a very rich cultural heritage. There are many good language schools around, and many locals enjoy learning English, or other foreign languages, in exchange for teaching you Chinese. Beyond the language, immersing yourself in various aspects of Chinese life helps to round out your experience and achieve a better balance in your day-to-day life.
29) Do you have any advice on dealing with friends and colleagues?
Chinese people who observe traditional customs like to stick to the idea of paying back for any favor received, or expect the same practice from recipients. For example, when you go for a meal, what is common in the West as “going Dutch” is not willingly practiced (although among modern younger Chinese, particularly those working in foreign companies, this is quite common now). But it is normal still for a generous person to pick up the bill when eating with friends.
30) What is the etiquette after my friends help me significantly or treat you a meal?
Usually, give them a present especially something from your home country, or nowadays, treat them a good meal in a great restaurant. Then you express your will to help them back when there is a chance – and you do!!
31) What’s the connotation of being ‘Laowai’?
Laowai is a colloquial term for foreigner – lao means old and wai means outside. It is, generally speaking, friendly – you don’t need to get too worried by it. “Lao” is commonly used in informal situations when referring to a man over forty years of age (eg Laowang, Laoli), and the term Laowai probably evolved from this.
Other issues
From football to films, babies to bridge, and salsa to singing, if you are in one of the big cities, there are bound to be some other expats with similar hobbies and interests, or from the same country/professional group. Use the main expat magazines to make contact, or one of the many websites that partner with China Expat (see listing on page 11 for more details).
33) Are there good sports/clubs facilities ?
Definitely! The Chinese are enthusiastic about most sports (playing and watching) and local facilities are generally good. Some physical exercise (even just in a local gym) is a good antidote to the stresses and strains of expat life and a healthier option than collapsing into a bar. Amateur inter-company, inter-country and inter-bar (oops, did we say bar ?) leagues exist in various sports in Beijing, Shanghai etc. Soccer is coming on, and basketball and table tennis are very popular too for obvious reasons! Get out there and don’t be a couch potato!
34) What are the major cuisines? What I should try out in where?
Any discussion about China must include food, as this is a major focus of society, and most business and social events revolve around eating. And there is no lack of choice in the larger cities.There are eight major cuisines – Lu (Shandong), Chuan (Sichuan), Yue (Cantonese), Min (Fujiang), Su (Suzhou), Zhe (Zhejiang), Xiang (Hunan), Hui (Anhui). We would recommend you to sample as many mainstream dishes as possible before you decide on your favourites to go back for more.
35) How to choose a really medically trained masseur?
There are many massage parlors in every Chinese city. But not all the masseurs are Chinese medically trained. Check out your masseur’s qualification, which include several years training in a medicine school university. Massaging can be a dangerous business if not done properly and some people have had their health problems worsened not improved. Also, be conscious that not all such establishments offer medical massage. Blind masseurs are very popular and generally very good.
36) Should I buy a house here and if so, how ?
There is a lot of interest recently in buying real estate, particularly with speculation on RMB strengthening. However this is a process best left to the professionals. For the individual, there are a number of hurdles. The first will be gaining access to a loan – banks are generally hesitant to lend to non-Chinese buyers, and you need fully to understand the terms of the mortgage and purchase process. You will need to pay a 30% deposit before you can apply for the loan. This is redeemable if you are turned down but may not be forthcoming without a legal enforcement.
Secondly, make sure you know what you are buying and from whom – there are a welter of documents to be inspected. For older units, forced government repossession is a risk. Finally, there are tax considerations including capital gains tax and a sales tax on properties sold within a few years of acquisition. As we go to press there are rumours that additional measures are coming to reduce foreign investment in real estate. Tread carefully if you want to enter this market.
37) How do I invest in the Chinese stock market ?
Unless you have your own team of analysts, investing directly in the stock market is akin to gambling. Given the lax rules on disclosure and poor accounting standards, even analysts struggle to make sense of the market. A safer option would be to invest in a fund with a history of dealings in mainland China. By doing this you will at least spread your risk over a number of stocks and market sectors.
38) How do you avoid paying too much for products ?
For anything that does not have an apparent fixed price (and even some things that do), there are typically three or maybe four informal prices for many products :
1. The price for local people
2. The price for Chinese from somewhere else
3. The price for foreigners who live here, have a little Mandarin, are into the local culture and can haggle.
4. Tourists
Clearly as an expat you will never get (1) or (2) – but having a local partner or friend doing your shopping might help ! However, by learning a little language, the ways of local shopkeepers, and retaining a sense of humour, you can shave a fair bit off (4) to achieve (3). In markets haggling is all part of the fun, although you should never cause the stallholders to lose face by beating them down too much. Even in some shops, e.g. electrical goods, you can get discounts for things like mobile phones or the like. However, balance this with the fact that guarantees are often meaningless and consumer rights are not the same as “back home”.
39) Do you “tip” for services and if so how much ?
Generally speaking, no, there is no culture of tipping. In fact if you try to give a tip it sometimes causes embarrassment. In big hotels and western restaurants, staff have begun to expect a little, maybe 10% if their service is especially good and/or if you are planning to use the hotel/restaurant again.
40) Where can I buy genuine DVDs, software and the
like ?
China is notorious for bootlegged software. If you want to make sure you are getting a legitimate copy, go to a foreign-run store like Carrefour or Wal-Mart. For music and video CDs/DVDs the price is usually a little over RMB20 – about three times the price of a bootlegged version but still not expensive by western standards. Of course computer software will cost more, but remember if you buy the bootlegged version you will not receive support or free updates.
41) Is it possible to buy good art and antiques to take home when I leave China?
Yes, of course – careful shopping in Beijing and Shanghai markets can reveal some attractive pieces, although of course you may need to be a bit of expert for more valuable items. Use your common sense – if it sounds too good to be true, it probably is. And beware of fakes ! Great expense is not necessarily the indicator of the genuine pleasure you will get from a piece. There also some nice contemporary paintings around, again at very reasonable prices but again it depends whether you are buying for pleasure or investment ! If you do want to take rare antiques out of the country, you may need to take advice on whether you can in fact do so – there are some quite proper restrictions aimed at protecting China’s cultural heritage.
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