CLB on the expat market:

The always interesting BizCult is in the midst of a decidedly unscientific expat salary survey. In its post, "The Real Slim, Shady Expat Wages Stand Up," BizCult reveals that of "15 respondents so far, the majority are 26-30 year old professionals from North America making US$10,000-$19,000 a year." I find this numbers both fascinating and highly believable. There are countless young and talented people working either legally or illegally in China at what in the United States would be absurdly low wages. BizCult correctly notes that Starbucks in China costs about the same as in the US, but fails to mention that one can rent a decent apartment in Shanghai or Beijing for around $300 a month (or less, depending on the definition of the word decent) and that many ex-pat (or perhaps more properly, half-pats) are taking jobs with Chinese companies these days. China’s second tier cities cost less and salaries there are presumably also less. I knew of an American lawyer who worked for a Chinese law firm for $2000 a month and of another, very experienced lawyer who was paid $30,000 a year. BizCult’s post proves that though there is money to be made in China, there is also a whole lot of job competition there as well, even for foreigners, particularly those without a great deal of applicable experience.

I think Dan has it right. The market has changed quite a lot over the past ten years (my tenure). Lots more jobs for expats, but a lot more competition as well.

When I started in Beijing as a lawyer with a (sort of) local firm, my salary was amazingly low. I won’t say how low, but I was just barely able to survive at the beginning — note that in those days, I was quite happy just to have a job over here. Luckily my raises came early and often from that point.

For lawyers these days, opportunities range from the big, high-end firms who have very stringent hiring requirements but also pay salaries comparable to what you would get at home, to "eat what you kill" deals with Chinese firms. There are always options these days, but some are very difficult to live with unless you already have some money in the bank.

It’s also true that you can live on the cheap, particularly compared to Western prices. It all depends on your standards, though. Prices in Beijing and Shanghai (food, housing) are obscene these days, and it is actually quite easy to pay Western prices for everything if you are not careful.

For kids in their 20s who can live with a roommate(s) and eat mystery meat on a stick, not a problem. You can definitely get by on a cheapo salary. For folks with kids, people that need to travel home once in a while, etc., it might be difficult on a local salary.

Dan mentions someone who makes 30K a year. That’s enough to live pretty well in Beijing, depending on your lifestyle. It’s even enough to include one trip home a year. Not too shabby, unless you are trying to save for retirement.