Living and Working in China
Quick links: Accommodation / Bank Accounts / Healthcare / Pay & Bens / Tax / Visas / Travel
Accommodation
It’s always wise to use a real estate agency. According to Chinese Law, tenant and owner have to share the payment of the commission to the real estate agent. Landlords in larger cities prefer it if you rent for a year or more. It is possible to find short term leases but the terms are different and the rents are usually more expensive. The lease terms are written in English and Chinese. Only the Chinese version of a contract is acceptable by the courts and will be relied on in the event of a dispute.
Owners will usually ask you to pay 2 months deposit and the 1st month’s rent in advance when you sign a long term leasing contract. Deposits are returned on vacation after both the tenant and the owner have checked the apartment.
The rent is paid in RMB, in cash, monthly in advance. Prices do not include utilities. Management fees are payable monthly, covering the cost of the building and amenities and the cost depends on the building age and the facilities offered to the tenants.
Bank Accounts
The procedure and documentation required to open a bank account in China varies from bank to bank. In general you’ll need to present a valid Passport and a Residence Permit before you can fill out an application form. Once you have completed this you will need to make a minimum deposit, usually in the region of $500 USD, though this also varies.
A Multi-Currency Account for Expats is also available, where you can deposit a capped amount of foreign currency. You will need to present your passport and pay a fee of 5 RMB to set up this account.
Healthcare
The central, provincial, and local governments fund hospitals and medical care is therefore provided either free of charge or at limited cost to patients. Although there is currently no system of private health insurance, many firms are looking to start such programs. Despite the absence of an official, private healthcare system, patients can still pay a fee to see a physician of their choice.
Hospital structures are different from place to place. Large cities like Beijing, Shanghai, and Shenzhen are well served with both general and specialist hospitals. Specialist hospitals have excellent equipment and technology: they routinely perform cardiac surgery, angioplasty, and transplant surgery. In many rural areas, there is a structured system of local and county hospitals with increasing levels of expertise as you go through the system.
Pay & Benefits
Working in China is very different from working in the West. Pay and benefits differ according to industry, but expatriates are typically offered double the salaries of local employees.
In major cities such as Shanghai or Beijing, larger companies often reward employees with an annual bonus of two month’s salary. It is also traditional to present a cash gift on the eve of major holidays, up to $200 on Chinese New Year, National Day and Labour Day. In addition, employees can expect generous employer hospitality in the form of social events and all expenses paid bi-annual trips.
Chinese employees enjoy three, week-long holidays each year, besides the annual 15 salaried days. These are referred to as “Golden Weeks”. If you’re married but live far away from your partner you get 20 days holiday to spend together. New mothers are given six months maternity leave; there is no paternity leave.
Tax
Tax is the foremost revenue source for the Government of the People’s Republic of China and is intrinsic to the country’s economic and social development. 1994 Tax reforms have streamlined the system.
The State Administration of Taxation (SAT) is the highest tax authority in China, controlling tax laws, regulations and the detailed rules for their implementation. With taxes on everything from animal husbandry to vessel usage it is an exhaustive list.
Any individual who has resided in China for more than a year pays tax on their worldwide income. If you’ve lived in China for less than a year, you only pay tax on income from domestic sources. Income tax in China is progressive, starting at 5% to a maximum of 45%. Everybody is liable for an initial 2000 Yuan deduction for ‘expenses’.
Visas
To apply for a visa you will need to submit your application in person to the visa office of your Chinese embassy. Appointments are not usually required but you may be interviewed by an official and they have the right to refuse your visa without explanation.
There are a number of types of visa. To apply for any of them you’ll need to bring a valid passport, a completed Chinese Visa Application form and a recent passport photo. The Z visa is for long term work and to obtain one of these you must bring the following additional documents: an employment permit and an invitation letter from a relevant Department of the Chinese Government.
When your visa arrives be sure to check it and raise any queries immediately.
Travel
China has cheap domestic flights to all the major cities and tourist destinations. Do be prepared for delays; these are on the increase despite pressure from both the government and consumers. Flight cancellations are also quite common.
Train travel is the major mode of long-distance transportation, with routes covering the entire country. It’s better to book tickets in advance through an agent.
Travelling by public city buses or long distance buses is inexpensive and ideal for in-city and short distance transportation. Local public city buses start at around ¥1 and can get quite packed during rush hour. More modern buses with air conditioning start at ¥2.
The major cities of Beijing, Tianjin, Shanghai, Guangzhou, Shenzhen and Nanjing have a clean, modern and efficient subway system. Chongqing has a monorail system. Most of these systems are being expanded and new ones are under construction in cities such as Hangzhou and Xian. The signage and ticket machines are in both English and Chinese.
Taxis are widely available and reasonably priced. Expect to pay between ¥10 and ¥50 for an ordinary trip within the city.
Bicycles are the most common form of transportation in China; at rush hour almost anywhere in China there will be thousands of them.
