This is China! BLOG

China’s Second-tier Cities Getting Expensive for Expats

Back in November 2007 The Humanaught wrote that l’il ole Suzhou is now the 20th most expensive city in Asia. ECA, a human resources association, performed the survey of worldwide cost of living rankings. Beijing and Shanghai came in at positions 7 and 8, respectively.

The report reads:
“In China, soaring food, oil and grain product prices along with the strengthening yuan against the US dollar have meant that locations throughout China have pushed up through the ranking during this period. Beijing and Shanghai, for instance, are up 13 and 23 positions respectively and are catching up with traditionally more expensive locations in the region, such as Hong Kong and Taipei.

More surprising was that their were other second-tier cities in China that were more expensive for expats to live in than Suzhou: Shenyang, #13; Qingdao, #14; Tianjin, #15; Dalian, #16; Chongqing, #17 and Chengdu, #19.

“While the difference in living costs throughout China remains considerable, with 95th-placed Beijing ranked 87 places higher than China’s least costly city, Xiamen, the cost of living in second-tier Chinese cities is catching up quickly. Living costs for foreigners in Chongqing, for example, have increased approximately 12% in the past twelve months – double the rise in living costs experienced by foreigners in Beijing during this period.”

I can certainly say that here in Suzhou the cost of vegetables and meats at the local market have increased. Pork has increased as much as 50%; some vegetables as much as 20%. As I eat in most of the week, I am appalled now at how much restaurants in Suzhou cost compared with five years ago, when I first came here. Western style restaurants now certainly cost as much as any Chicago venue; and it’s cheaper to eat in New York Chinatown than in many Suzhou Chinese restaurants.

And then factor in the rise in the value of the Chinese currency, the yuan, it’s easy to see how even second-tier cities in China are becoming more expensive for expats to live in. Expats living in the interior of China have it just as expensive for logistics reasons: it ain’t cheap shipping that box of Wheaties cereal into the mountain ranges of Sichuan province!

China – and certainly Suzhou – is indeed becoming a victim of its own success.

Bill Dodson
SUZHOU, China