Top 5 Budget-Friendly Cities in China

Budget-friendly cities in China let students, expats, and travelers enjoy a good quality of life for less than in Beijing and Shanghai.

Chengdu, Xi’an, Chongqing, Kunming, and Dali are five of the best affordable cities in China for people on a budget. They are also worth comparing if you are looking for the cheapest cities in China.

Instead of ranking the biggest or most famous Chinese cities, this guide focuses on living costs, universities, food, transport, and lifestyle.

Quick Answer: Top 5 Budget-Friendly Cities in China

Here is a quick comparison of the five cities:

• Chengdu — ¥4,500–6,000 per month: Best overall balance
• Xi’an — ¥4,000–5,500 per month: Best for students and history
• Chongqing — ¥4,500–6,000 per month: Best for affordable megacity life
• Kunming — ¥4,000–5,500 per month: Best for mild weather and nature
• Dali — ¥3,500–5,000 per month: Best for quiet living and the lowest budget

These estimates cover housing, food costs, public transport, utilities, and simple leisure. However, your actual monthly cost will vary by lifestyle and location.

The estimates do not include tuition, flights, visa fees, health insurance, or major travel

1. Chengdu: Best Overall Value

Estimated monthly living cost: ¥4,500–6,000

Chengdu, the capital of Sichuan Province, is famous for pandas, teahouses, spicy food, and a relaxed lifestyle.

Chengdu is one of the best budget-friendly cities in China for students who want both value and big-city convenience.

The city has good public transport, universities, hospitals, and plenty to do. In addition, costs can stay below those in Beijing and Shanghai, especially outside the center.

Why Consider Chengdu?

• Large student population
• Many respected universities
• Strong public transport
• Affordable local food
• Active cultural and café scene
• Easy travel around Sichuan

Major universities include:

• Sichuan University
• University of Electronic Science and Technology of China
• Southwestern University of Finance and Economics
• Chengdu University of Technology

Students can save money with cheap local meals, including noodles, dumplings, hotpot, and campus food. Meanwhile, parks and teahouses offer low-cost activities.

Humidity may not suit everyone. Rent also rises in popular central districts.

2. Xi’an: Best Budget-Friendly University City

Estimated monthly living cost: ¥4,000–5,500

Xi’an was an ancient capital and a key starting point of the Silk Road.

Today, Xi’an combines historic sites, Chinese universities, metro services, and high-speed rail. As a result, it is one of the best cities in China for students who want lower living costs.

Why Consider Xi’an?

• Large number of universities
• Affordable student districts
• Rich history and culture
• Low-cost local meals
• Strong engineering and technology programs
• Convenient rail links

Major universities include:

• Xi’an Jiaotong University
• Northwestern Polytechnical University
• Xidian University
• Shaanxi Normal University
• Xi’an International Studies University

Xi’an is especially attractive to students interested in engineering, science and technology, and other technical fields. Xi’an Jiaotong University is one of the major universities in the city.

Students comparing world class universities may also consider schools in more expensive cities, such as Shanghai Jiao Tong University. However, Xi’an can offer a lower daily budget than Shanghai.

Popular foods include biangbiang noodles, roujiamo, dumplings, and lamb noodle soup. Xi’an also has many halal food choices.

The Terracotta Warriors, Ancient City Wall, and Muslim Quarter add to Xi’an’s appeal as a university city.

Winters are cold and dry, while summers are hot. The city also lies far from China’s east coast. Some international trips may need a connecting flight.

3. Chongqing: Best Budget-Friendly Megacity

Estimated monthly living cost: ¥4,500–6,000

Chongqing sits among hills, rivers, bridges, and tall buildings. Its layered roads give this Chinese city a unique look.

Chongqing suits people who want modern city life at a lower cost. It is also a good option for people who prefer the largest cities in China but want to avoid some first-tier city prices.

Why Consider Chongqing?

• Modern city at a moderate cost
• Large metro and monorail network
• Famous hotpot and street food
• Strong university choices
• Active nightlife
• Good high-speed rail links

Major universities include:

• Chongqing University
• Southwest University
• Chongqing Normal University
• Chongqing University of Posts and Telecommunications
• Chongqing Medical University

Food streets and riverfront areas provide cheap activities. Public transport reaches most of the main urban area.

Most shops also accept mobile payment. Customers often pay by scanning a QR code.

Hot summers and steep streets can challenge new residents. A short map distance may still involve stairs or several road levels.

4. Kunming: Best for Mild Weather

Estimated monthly living cost: ¥4,000–5,500

People call Kunming, the capital of Yunnan Province, the Spring City because its climate stays mild.

The city has green spaces, universities, and easy access to nature. Compared with Chengdu or Chongqing, Kunming also feels calmer.

Why Consider Kunming?

• Mild weather during much of the year
• Lower costs than many coastal cities
• Easy access to nature
• Regional food and markets
• Universities with international programs
• Useful base for travel across Yunnan

Major universities include:

• Yunnan University
• Kunming University of Science and Technology
• Yunnan Normal University
• Kunming Medical University

Popular places include Green Lake Park, the Stone Forest, and flower markets. Kunming also provides a base for trips to Dali and nearby rural areas.

The international business scene is smaller than in Beijing, Shanghai, or Shenzhen. Some imported goods may be harder to find.

5. Dali: Lowest Estimated Budget

Estimated monthly living cost: ¥3,500–5,000

Dali has the lowest cost of living in this comparison. Therefore, it is the cheapest place to live in China among these five cities.

The city lies between Cangshan Mountain and Erhai Lake. Bai culture, old streets, cafés, and a slower pace shape daily life.

Dali attracts artists, nature lovers, and travelers who want to stay long term.

Why Consider Dali?

• Lowest estimated monthly budget
• Mountain and lake scenery
• Quiet daily life
• Local markets and regional food
• Small creative community
• Easy access to outdoor activities

Dali University is the city’s main higher education institution. The city may suit students who find the right program and prefer a smaller community.

Dali has fewer universities, hospitals, and international services. Tourist areas may cost more during busy seasons.

Cost Comparison: 5 Budget-Friendly Cities in China

City	Estimated Monthly Living Cost	Best For	Main Appeal
Chengdu	¥4,500–6,000	Students and expats	Best overall balance
Xi’an	¥4,000–5,500	Students and history lovers	Strong university city
Chongqing	¥4,500–6,000	Urban living on a budget	Affordable megacity life
Kunming	¥4,000–5,500	Nature lovers and long stays	Mild weather
Dali	¥3,500–5,000	Quiet living and remote work	Lowest estimated budget

Which Budget-Friendly City in China Suits You?

Chengdu offers the best overall balance, while Xi’an suits students and history lovers. Meanwhile, Chongqing works well for people who want megacity life on a budget.

In contrast, Kunming is better for mild weather and nature, while Dali has the lowest estimated budget.

However, the cheapest city is not always the best choice. Before choosing a university in China, compare programs, tuition, dormitories, scholarships, and student support.

For families, local education may also matter. Parents may want to compare nearby middle school and high school options before choosing an area.

Students may look at academic reputation as well. University rankings can compare research strength, international reputation, and the number of highly cited researchers or papers. However, rankings should not be the only factor when choosing a university.

What Shapes Your Cost of Living in China?

The cost of living in Chinese cities can vary widely. Housing, food, transport, and lifestyle all affect the overall cost of living in China. For example, living near a city center usually costs more.

It is also dependent on where you live.

A cost of living calculator can help you make a rough comparison between cities. However, your real spending may be different.

Housing

Housing is often the largest monthly expense. However, dormitories and shared apartments usually cost less than private homes in central or tourist areas.

Check the rental terms before signing a contract. Look at the deposit, utility fees, agency charges, and lease length. You should also check furniture, internet, and local address registration.

Read the full Apartments in China guide before paying.

Food

Campus canteens and local restaurants can keep food costs low.

For example, a simple local meal may cost around ¥10–30. Imported groceries, cafés, and international restaurants usually cost more

Transport

Metro and buses make public transport cheap in most major cities. In contrast, frequent taxis and ride-hailing can quickly increase your spending.

A cheap room may not save money if it creates a long commute. Check the China transportation guide before choosing an area.

Lifestyle and Extra Costs

Shopping, nightlife, sightseeing, and frequent trips can increase your costs. Also budget for mobile data, utilities, health insurance, study materials, and emergencies.

How to Save Money in Budget-Friendly Cities in China

• Begin in a university dormitory
• Live near campus or a metro line
• Eat at campus canteens
• Use public transport
• Avoid expensive tourist areas
• Limit delivery and taxi spending

For a full budget, read What Is the Cost of Living in China?.

Travel Tips for Budget-Friendly Cities in China

These cities in China also work well for budget travel. In addition, they offer local food, culture, and major attractions at relatively low daily costs

• Chengdu: Panda base, parks, teahouses, and Sichuan opera
• Xi’an: Terracotta Warriors, City Wall, and Muslim Quarter
• Chongqing: River views, mountain streets, and Hongya Cave
• Kunming: Green Lake, Stone Forest, and flower markets
• Dali: Erhai Lake, Cangshan Mountain, and Dali Ancient Town

Allow two or three full days for larger cities such as Chengdu, Xi’an, and Chongqing.

For cheaper flights, compare Kunming and Chongqing with larger entry points such as Beijing, Shanghai, Guangzhou, Shenzhen, and Hong Kong. However, the best route depends on your departure city and travel dates.

Travelers coming from the United States or other distant countries should compare several routes. Prices depend on your departure city and travel dates. Baggage, airport transport, and domestic connections can also raise the final cost.

Start Your Journey to Study in China Today

Choosing the right city is an important part of preparing to study in China. A lower-cost city can help you save money, but it should still offer the right university and program.

ApplyForChina helps international students compare universities, admissions, scholarships, and China university application.

Read our quick guide for international students before you begin.

Frequently Asked Questions About Budget-Friendly Cities in China