Financial impacts of moving to China

March 31, 2010 4:49 AM

Asking for a friend: Financial considerations of moving to China and being paid in renminbi? (originally from Britain)

My friend is going to take a permanent position in China, as in not contract, and he is currently not planning to live there forever. It is not clear if he can negotiate to be paid in pounds because he works for the same company right now in Britain. Regardless, what should he consider in financial terms when being paid in renminbi when it is likely he will move back to the UK in the short term (let's say within 5 years).

He does have personal reasons of why he would like to work in China for a bit, but how does it stack up financially? If it makes a difference, he will be located near Beijing working as a sw developer.

posted by like_neon to Work & Money (3 answers total)

I would ask to be paid in pounds or euro or USD. Those are more liquid currencies and so can more easily be converted when he leaves. Plus there are fewer currency controls on those currencies.

Also, yor friend should contact other British expatriates working in China and ask them what currency they are paid in.
posted by dfriedman at 5:37 AM on March 31, 2010

Actually, I would rephrase my response above a bit.

First, your friend should contact some British expatriates working in China and ask them what currency they are paid in, and then request to be paid similarly.
posted by dfriedman at 5:55 AM on March 31, 2010

It's important to note that he's probably retiring or moving back to the UK later on, thus, it will be wise to be paid in pounds.

I also recommend your friend to seek advice from a financial advisor(CFA, fee-based, unrelated to the company he is working at or plans to work for).
posted by jchaw at 7:32 AM on March 31, 2010