Beijing More Expensive than Hong Kong for Expats?

According to a survey by ECA International in September, Beijing became more expensive for expats than Hong Kong. ECA International refer to themselves as “the world's leading knowledge and solutions provider for international human resources professionals” but are really just a company that specializes in giving advice to multinationals on how much expats in various countries should be paid. According to China Daily, who offer a nice summary of the survey here – ECA's survey compares a basket of 125 consumer goods and services commonly purchased by expatriates in more than 370 locations worldwide. The survey does not cover the cost of accommodation, school fees or car purchases, which ECA says are usually compensated for separately in expatriate packages.

For Beijingers, the most eye-catching statistic to emerge from the survey is - as China Daily puts it - “Beijing has for the first time become more expensive than Hong Kong for foreigners as a result of surging inflation on the mainland and appreciation of the yuan”. Rising to 31st place from 101st a year ago, Beijing is now ahead of Shanghai (35), London (72), Seoul (90) and Hong Kong (94).

We’re not sure on how reliable ECA’s survey results are, after all last year they claimed that “Shanghai remains the best location in China for Asian expatriates” – a statement that all Beijingers know in their heart is preposterous. They also rank Luanda, the capital of Angola, as the most expensive city on earth.

An article on ECA International's website explains the rise thus: “Beijing’s movement has been driven by both the strength of the Renminbi and persistent inflation, which we have also seen in other Chinese locations. While the largest cause of changes worldwide in the cost of living in recent months has been exchange rates, inflationary pressures have continued to contribute to the cost of living rises we have witnessed in many locations.”

Links and Sources
China Daily: Beijing more expensive than HK for foreigners
ECA International.com: Fluctuating exchange rates impact expatriates’ cost of living in Asia
Ecplaza.net: The Gap Between Chinese Cities Continue to Narrow, Reports ECA International’s Location Ranking Survey
Citymayors.com: The most expensive cities in the world, Asia and Europe
Growyourwealth.blogspot.com: HK image
The Beijinger: Beijing Ranked the 5th most Attractive City in the World
The Beijinger Forum: Beijing... expensive city?