Working in China

Career Opportunities & Internships
1

<p>I'll be graduating in Spring 2012, with a degree in Economics with a minor in East Asian Studies. I'm considering working in China after I graduate. Right now I'm weighing my options to see if working in China is right for me.</p>

<p>Here are my options:
1- Working in the Finance sector in the U.S
2- Working in the Finance sector in China
3- Working as an English teacher in China. I would work at a school and also look for part time tutoring jobs as well. ( I've heard that I can charge around 30-50 USD per hour)</p>

<p>So I've been to China twice. I've studied abroad in Beijing for 2 summer semesters, and I love it there. I want to work in China, because I like it there, and I feel like it would be a good life experience. I also think it would be good building my career too, because work experience in China is desirable in the U.S as well.</p>

<p>On the other hand, jobs in China just don't pay as well. The average salaries I see for Americans working in China is somewhere around 1,000-2,000 a month and about 15,000-20,000 USD a year. I think if I got a job in the fiance sector in the U.S I could expect a starting salary around 40,000. </p>

<p>By the time I graduate I will have borrowed 30,000 in loans. It will be hard to pay off if I worked in China. But at the same time, I'm not too worried about it. I have a few years grace period to pay it off. </p>

<p>I also know that the cost of living in China is significantly lower in China. It's about a third or a half of what it is in the U.S. And most job offers in China offer free housing to American employers. I feel like taking this into account, maybe the salary in China won't be too bad. How much do you the difference will be? Will I be able to save a comparable amount of money in China with respect to the U.S?</p>

<p>Another factor worth considering is that I'm Chinese American. I'm a native speaker of Cantonese. I'm also pretty decent in Mandarin but I'm no where near native-level. But I would say that I have at least working level ability in Mandarin. I studied Mandarin for 3 years, and have studied Chinese in Beijing for a total of 4 months. </p>

<p>I also feel that being Chinese American can hurt me while looking for jobs in China. I know that Chinese companies and universities like to hire Caucasians. They feel that Chinese Americans don't speak English as well. (Just to be clear though, my native language is English)</p>

<p>Also one last question. Do you know what income taxes I will be subjected to if I work in China? Do I pay Chinese and American income taxes?</p>

<p>So how do you guys weigh on this? If any of you have work experience in China, please share. Also, if you suggest working in China, tell me some ideal locations if you can.</p>

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<p>I noticed that this has a lot of views but no replies. Is there anyone out there with work experience in China that could comment on this?</p>

3

<p>Yes, you are subject to federal income taxation as long as you are an American citizen. What taxes you’d have to pay in China are up to the Chinese.</p>

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<p>Ah I see, thanks for your input. I guess that makes the money situation even worse then.</p>

5

<p>

Well you shouldn’t worry about that because that notion will be instantly dispelled 10 seconds into your interview (the English portion of it).</p>

<p>Where in China would you work? Shanghai? Beijing?
You should also consider Hong Kong, which pays better (and is more expensive to live in), and is more livable than Shanghai and Beijing. Moreover, Hong Kong is a major financial center, and Cantonese, Mandarin, and English are ALL major languages that are spoken in Hong Kong (Cantonese being the most prevalent). There is also a large expatriate community there that you, as an American, might be able to be connected to.</p>

<p>Taiwan (Taipei specifically) is also a very livable option (much better air quality than China), with a high standard of living that is comparable to Hong Kong.</p>

<p>Your tax situation is actually very good. the IRS lets you exclude up to ~100k in foreign income from your taxable income as long as you are actually living abroad. Thus, your income would only be subject to the taxes of the foreign country, not the US.
[Foreign</a> Earned Income Exclusion](<a href=“http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html]Foreign”>http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html)
[Foreign</a> Earned Income Exclusion - IRS Form 2555](<a href=“http://taxes.about.com/od/taxhelp/a/ForeignIncome.htm]Foreign”>How the Foreign Earned Income Exclusion Works)</p>

<p>Income taxes in Hong Kong are very very low. However, taxes in China are higher than in the US. Taxes in Taiwan seem to be somewhere in between. You should run the numbers yourself, along with finding average salary numbers for jobs in those locations.</p>

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<p>Thanks a lot Terenc, that was a lot of helpful information. </p>

<p>The cities I’m considering are Beijing, Shenzhen, Guangzhou, and Hong Kong. I’m also considering Shanghai, but it has lower priority for me than those 4 cities. </p>

<p>Out of all the places that I’ve been to in China, my favorite would probably be Beijing with Hong Kong being number 2. But I’ve only been to Beijing 2 months at a time. I can see how living in Beijing might be a problem. </p>

<p>I actually haven’t considered Taiwan. That’s an interesting suggestion. I will look into that. </p>

<p>I’ve also read that you can get an “Expat Contract” which pays foreigners very well. But from what I read, Expat Contracts are only offered to people with substantial experience.</p>

<p>I just wanted to add that during my study abroad programs I met a lot of Yale graduates who found teaching jobs in AnHui and HuNan. But they’re all making like 1000 USD a month. I feel like that if Yale students can only make so little, it will be even harder for me to find a decent job.</p>

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<p>Keep in mind that 1,000 USD a month in 2nd/3rd tier cities like Anhui and Hunan is a very good income (I don’t specifically know what the cost of living is like in those cities, you should ask other teachers).</p>

<p>But I think it is pretty obvious that you don’t become an English teacher in China for the money; you do because of other factors (improve language, experience culture).</p>

<p>The reason I suggested Taiwan (Taipei) is that the standard of living and air quality is much higher than even Beijing (I’ve been to both), which is due to the fact that China has a great deal of manufacturing-type industries, whereas Taiwan’s industries are more high tech.</p>

<p>I personally think Hong Kong is a very good choice (low taxes, standard of living, you speak Cantonese and English, financial center).</p>