The China Urban Index: A Report on Western
Expatriate Livability

China’s opening to the outside world and its emergence as a global economic power was one of the most important socioeconomic events of the late 20th Century. By 2005, China’s gross domestic product totaled $2.26 trillion, making its economy the fourth-largest in the world, behind the United States, Japan and Germany. By 2020, it’s expected to become the second-largest economic power in the world, behind only the United States.

It is no wonder a record number of international companies are establishing operations in this growing market—at a pace that continues to intensify. In fact, today an estimated half-million expatriates are at work in China, and a 50 percent increase is expected in 2006 alone.

China is the place to be, but where?

As the thought leader in relocation, SIRVA has partnered with Hong Kong University of Science & Technology to conduct a major research project on the suitability of various cities throughout China for corporate relocations and business operations from a human resources perspective.

The study was conducted by a team of senior researchers from SIRVA and the Hong Kong University of Science & Technology who analyzed and compared three "first-tier" cities, including Beijing, Hong Kong, and Shanghai, and five other large (population two to ten million) but lesser-known "second-tier" cities, including Chengdu, Dalian, Hangzhou, Qingdao and Wuhan.

Information sources for the study include more than 100 in-depth interviews, conducted face-to-face over the course of three months with expatriates living and working in the eight cities studied. This information is analyzed in conjunction with data from statistical yearbooks, government agencies and other published sources to provide a holistic picture of the China expatriate experience.

The Quality of Life Index provides a view on key differentiators for those relocating to one of the eight cities studied. It offers a comparative look at the cities based on aspects that have the greatest impact on an expatriate’s ability to adapt to life in China. Data include air quality, housing, health care, educational options and population density.

The Business Environment Index offers insight on the opportunities and challenges of establishing a business in one of the eight cities studied. Data gathered for this component include views on government support, foreign direct investment, average annual salaries and transportation resources.

City Summaries for each city in the study provide further details and insight into the characteristics that make each location unique.