The key points to bear in mind when relocating to Shanghai.

By Jochen Hertweck, student at Hogeschool of Amsterdam, Netherlands and recent intern at Santa Fe Shanghai.

As the centre of commerce and largest city of the world's fastest growing major economy, Shanghai is the city everyone is talking about. It is often the obvious first choice for companies entering China, so it shouldn't come as a surprise that the number of expatriates living and working there is skyrocketing.

While Shanghai has a long way to go to being as ‘internationalised’ as New York, London and Hong Kong, Shanghai is without a doubt the most cosmopolitan city in China. Here is a quick overview of some of the most important things to consider when relocating to Shanghai.

Immigration

To legally work in China, a foreigner must obtain a work permit and residence licence (Z-Visa). There are some requirements that need to be fulfilled such as a university degree and a minimum of 2 years working experience. Additionally, all foreigners (18 years old and above) must undergo a health check to secure a residence permit. Foreigners that have any communicable diseases are denied residency.

As the rules for issuing work permits are subject to constant change, particularly before events such as the 2008 Olympics and Expo 2010, most companies usually use visa agencies such as Santa Fe to help them with this highly administrative task.

Customs regulations for household goods

China has many restrictions regarding the importation or exportation of household goods or personal effects. One of the most important things is that you can only import or export household goods if you are in possession of a valid residence licence and work permit.

Many items incur import duties: furniture, electrical items, alcohol, 2nd shipments into China, and others. To avoid inconvenience, Santa Fe will educate expatriates on the various regulations and restrictions involved so that they can be closely followed.

Housing

Shanghai's real estate market has experienced an unprecedented boom during the last 2 decades, which has transformed the city entirely. As a result there is now a wide selection of housing available for all tastes and budgets. The most common types are high-rise apartments but there are also villas available in the suburbs, as well as old renovated lane houses in the former French Concession area. Apartments are generally cheaper to rent than lane houses and villas since they are abundant and located across the city. The price range of lane houses is usually between that of apartments and villas but they can be difficult to find since there are fewer and there is always strong demand. Villas are typically located in gated expatriate compounds and are the most expensive option available.

Most housing contracts are signed for one year however signing for longer can increase your negotiating power. The typical Shanghai housing lease contract requires two months’ security deposit and one month’s advanced rent.

The most popular areas for expatriates to live in Shanghai are: Xintiandi, Hongqiao, the French Concession area and Xujiahui in Puxi, as well as Lujiazui and Jinqiao in Pudong.

Schools

One of the most important considerations for expats with children is the availability of suitable schools. In Shanghai's case most parents can rest assured that the city has a good variety of international schools and there are schools for almost all curriculums: American, British, German, French, Japanese, Korean, Singaporean and International Baccalaureate. The average annual tuition fee for international schools is approximately USD 25,000 and almost all schools also offer Chinese language classes to help children learn and experience more about the local culture.

Healthcare

In recent years many internationals hospitals and clinics opened in Shanghai to serve expatriates and wealthier Chinese. All of those private hospitals have staff with good English skills and standards that are on the same level as hospitals in Europe or America.

There are also several local hospitals in Shanghai with international standards however the insufficient English skills of the personnel remains a problem.

Shopping

Shanghai is a shopper's paradise. There are two main shopping streets, Nanjing Road and Huai Hai Road, where all the huge department stores and countless luxury and other shops can be found. But there are also plenty of giant shopping malls in other districts such as the Super Brand Mall in Lujiazui or the Cloud Nine Mall near Zhongshan Park. For grocery shopping it's best to head to one of the countless Carrefour or Tesco supermarkets which offer a wide selection of imported food products. However, due to the fact that imported food is subject to high duties in China, shopping there is much more expensive than in neighboring Asian countries.

Getting around

In early 2010 Shanghai's efficient subway system took the crown of the world's longest subway system away from London. The system now has a length of more than 420 km (260 mi), a figure that is expected to double within the next 10 years. So it comes as no surprise that the metro is the transportation option of choice for most. Due to the almost constant traffic jams on the roads it is also by far the fastest option.

Another option is taking a taxi however most drivers speak no English at all, so make sure that you have your destination written down in Chinese. Furthermore taxis can be very difficult to get during rush hour.

Shanghai is also a major transport hub for domestic and international travel. The city has two airports: Shanghai-Pudong in the east, which is the main international gateway to the city, and Shanghai-Hongqiao in the west, which handles almost exclusively domestic flights. The latter is also directly connected with the Hongqiao Railway Station, one of the 3 large train stations from which high-speed trains depart to all parts of China.

In summary, Shanghai has come along way in recent years and anyone willing to relocate to the city will find themselves in the middle of an atmosphere of excitement and constant change. And, with the right guidance, those deciding to live and work in Shanghai will find their time in the city a truly fulfilling life experience.

For further information on relocating to Shanghai, please contact Paul Franco at pfranco@santafe.com.cn.

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