Cheap Labor

OK, enough about the negatives of living here in Shanghai. One of the best things about living here in Shanghai as an expatriate is the power of your money. When you are an American expat coming to China, you probably already have a decent amount of money saved up in the US (but in many American's case maybe not) . That sum is probably not enough to retire on the US, but in China that amount may very well be a fortune. Combined that with an expat income, you can live very well.

What this means is flexibility. You are able to do things in your life that you normally would not because the cost will be too prohibitive. It could mean being able to live in the middle of the city. These things also extend into small things in your everyday life. For instance if you don't want to do house work and want to hire domestic help it is very cheap. It costs between 7 to 10 RMB per hour for a maid (called ayi here in Shanghai), that is about .93-$1.30 per hour. For a live in maid or nanny it could only cost about 800-1200 RMB per month ($105 - $155). Rates depends on experience and believe it or not where the maid is from (maids from within Shanghai can command higher rates than the ones from outside of Shanghai; prejudice in China is another topic for another time).

Other things could be getting a massage on a regular basis. Getting a Chinese style message for 1 hour would cost about 50-60RMB ($6.60 - $8.00). This could be a foot massage or a back massage.

Tailor made clothes is another inexpensive indulgence. There is an area in the older part of Shanghai called Dongjiadu where one can buy fabric of your choice from textile vendors then bring them to a tailor who can do a pretty good job of producing a knock off of your choice. You can bring a sample for them to copy or even a picture of that Armani is good enough. Usually for a man's cotton shirt you can have tailor made for about 100 RMB ($13). For women's clothes the possibilities are only limited by the ability of the tailor. In general the quality of the clothes depends on the tailor. From my experience, the skill level is pretty decent.

The reason for the cheap labor is no secret. There are 1.3 billion people in this country who only around 30 years ago was under the iron grip of a totalitarian regime that for all intents and purposes stopped progress for about 30 years (1949-1979). Some could argue that China may have regressed during that period. 1.3 billion dwarfs the population of the US (300 million), and some believe that it is a low estimate. Some estimates have the actual population of China in the neighborhood of 1.5 -1.7 billion. Can you imagine the margin of error exceeds the population of the US!! When there is such fierce competition for everything including jobs, food and services it is very difficult for people in this environment to stand out. This keeps wages low and working conditions poor. The Chinese are also notoriously frugal which also keeps prices down. The Chinese are some of the most price sensitive consumers in the world.

My last story is about the time we moved from our first apartment in Shanghai to the one we currently reside at. We had an appointment with movers for a Sunday. Well, on that Saturday we realized that we were fully packed and were actually ready to go. I half joked but half seriously told my wife that we should just call the movers and see if they are free, after all it is China and for these types of blue collar workers they are willing to work at any time. We called, and sure enough the movers were free and could be at our apartment in 20 minutes. About two hours after that idea was hatched all of our stuff had made it to our new apartment. That will never happen in NY. If we even had the nerve to inquire with movers in NY of such an idea I am sure we would have been told that we were crazy. BTW, the final bill was 250 RMB ($33) for 4 movers.

Anyway, cheap labor is good from my perspective. However, when you look at it from the other angle things look quite grim.