Living In China Info

The currency throughout China is the Ren Min Bi (RMB) called yuan or kuai. Foreign currencies cannot be used inside China. Exchanging foreign currency is fairly straightforward and can be done at major banks and most foreigner-approved hotels. NOTE: Make sure you keep your currency conversion receipt - you will need this to change RMB back to foreign currency.

Follow up:

Changing RMB to foreign currency can be more challenging, but is technically and legally possible. It is a good idea to get someone from your school to assist you with this transaction.

ATM's are not as widely available as in most western countries, however, the ATM network is growing. ATM's are available in the larger cities and regional centers, often inside banks. Do not expect that you will be able to use your ATM card in China.

Credit card facilities are similarly limited, usually only available in very large stores and foreigner-approved hotels. It is a good idea to confirm beforehand that credit cards are accepted. Credit cards and travelers checks can be used for cash advances at most major banks.

You will be able to open a bank account with your Residency Visa. This can be worthwhile alternative to to keeping large amounts of cash on you or stashed around your apartment. Locally issued domestic and international credit cards are also becoming more available. (More information on this as things develop)

Bargaining is a common practice when shopping and as a foreigner you will be expected to have a lot of money. Be prepared for inflated prices and be smart about not showing how much cash you are carrying. Find out the prices of commonly purchased items and be prepared to walk away if you are being over-charged. It is a good idea to agree on the cost of services before using them (i.e. taxi's).

You will be required to pay personal income tax on your earnings above 4800RMB per month. As a "Foreign Expert" your first 4800RMB is tax-free. Thereafter a sliding scale applies to your taxable earnings. You are responsible for ensuring that your taxes are paid, however, this is usually done by your employer. A regular statement from your employer detailing what you have earned, how much you have been paid and what deductions have been made is a good idea. Get it in writing! The costs associated with your accommodation should not be included in your earnings.

By local standards ESL teachers are very well paid. We suggest a little commonsense in dealing with money issues. People you have only just met will openly ask you how much you earn. Decide in advance how you will deal with this question. Most of your Chinese teaching colleagues will be earning 1200RMB per month or less.