Spurred by the rising value of the renminbi and soaring
commodity prices, the cost of living for expatriates in Beijing and
Shanghai is fast catching up with expensive cities in Asia, a
recent survey has found.
Beijing and Shanghai are up 13 and 23 positions to rank 95th and
100th among 300 locations worldwide, according to the latest Cost
of Living Survey conducted by ECA International, a leading
international human resources organization.
The two cities are catching up with traditionally more expensive
locations in the region, such as Hong Kong and Taipei, the survey
said.
Many expatriates said it is true that living costs have been
going up in recent months but there are big variations as well in
terms of currencies they use to pay for their rents or their
lifestyles in China.
Executives whose salary packages are denominated in dollars feel
the pinch more than those, for example, who are paid in euros. The
renminbi has been rising against the greenback while dipping
against the euro.
Meanwhile, the survey found that the difference in living costs
across China remains considerable, with 95th-placed Beijing ranked
87 places higher than China's least costly city, Xiamen.
But the cost of living in second-tier Chinese cities is catching
up quickly.
Living costs for foreigners in Chongqing have increased about 12
percent in the past 12 months - double the rise in living costs
experienced by foreigners in Beijing during this period.
A 6 percent rise in the cost of goods and services typically
purchased by expatriates has meant that despite the weakening Hong
Kong dollar, Hong Kong's position in the ranking has remained
steady and is still the fifth most expensive location in the region
and 79th worldwide.
The survey is conducted twice a year comparing a basket of 128
consumer goods and services purchased by expatriates in over 300
locations worldwide.
(China Daily December 3, 2007)
