Average salary in China: What it means for your bottom line

Outsourcing has become one of the primary strategies for companies seeking to reduce costs, enhance efficiency, and access specialized expertise. 

Global businesses often offshore services to countries known for competitive labor markets, such as India, the Philippines, and Eastern Europe. These regions offer skilled workforces at lower operational costs.

China, while arguably not a top choice for service outsourcing, is slowly gaining attention as a viable option, thanks to its evolving labor market, growing talent pool, and improving business environment. 

This article explores the average salary in China. Learn what it means for your company’s bottom line and how China compares to other leading offshoring destinations.

Top 3 industries for offshore services in China 

China has long been known for its manufacturing strength, but in recent years, its offshore services sector has expanded into new areas.

As labor costs rise in other regions, global companies are starting to explore China for more than just production. 

The country now supports a wide range of offshore operations, which reflects the country’s growing capabilities and appeal as a multi-industry offshoring powerhouse:

1. Manufacturing

China remains a global manufacturing leader. Many companies offshore production processes such as assembly, packaging, and component manufacturing to Chinese factories to reduce costs and scale output. 

The country’s vast industrial base and supply chain ecosystem make it ideal for mass production across electronics, textiles, automotive parts, and consumer goods. 

Offshore partnerships in this sector often focus on efficiency, high-volume output, and rapid delivery to global markets.

2. Information Technology (IT)

China’s IT sector has expanded rapidly, offering offshore services such as:

• Software development
• App design
• System integration
• Technical support

Chinese tech professionals bring strong expertise in artificial intelligence (AI), cloud computing, and data analytics. Businesses farm out IT tasks to leverage this talent, reduce development costs, and accelerate digital transformation. 

Major tech hubs like Shenzhen and Beijing continue to attract global companies looking to outsource complex technical projects.

3. Customer service

Customer support is another growing offshore service in China. Companies offshore call center operations, live chat support, and multilingual helpdesk services to Chinese providers. 

These services cater to both domestic and international markets, often covering English, Mandarin, and other major languages. The focus is on delivering cost-effective, high-quality customer interactions while maintaining brand consistency.

Each of these industries highlights China’s evolving role in global offshoring, offering a mix of affordability, talent, and technical capability.

Average salary in China annually per industry

Understanding wage levels across different industries helps businesses make informed decisions about hiring and offshoring.

Average salaries in China can vary widely depending on the sector and type of employer. 

According to 2023 data from Statista, the average annual salaries listed below reflect earnings in urban, non-private units, which include state-owned enterprises, joint ventures, and foreign-funded companies.

These figures do not include employees of privately owned businesses or self-employed individuals.

Source: Statista 

IT, financial services, and research-related fields top the list, while manufacturing, real estate, and construction remain on the lower end. 

These differences reflect the demand for highly skilled labor in certain sectors, along with the influence of urban economic development and government-backed industries.

Average salary in China: Cities with the highest annual salaries

Salary levels in China vary widely based on region, with major cities and economically advanced provinces offering higher compensation. 

As per Statista, average annual salaries in non-private urban enterprises, such as state-owned companies, joint ventures, and foreign-funded organizations, are highest in key financial and commercial hubs.

The national average in 2023 was approximately 120,700 CNY, but some cities significantly exceeded this figure.

Here are the top cities and regions with the highest average annual salaries in 2023:

Source: Statista

Shanghai and Beijing lead the rankings due to their concentration of finance, technology, and multinational companies. Regions like Tibet and Qinghai follow, reflecting government investment and a smaller workforce size. 

Salary differences across cities are shaped not only by location but also by dominant industries, particularly IT, finance, and tech consistently pay the most across all regions.

Average salary in China: Labor laws and wage standards

China’s labor laws aim to protect employee rights, regulate wages, and promote fair workplace practices.

Over the years, the government has developed a detailed legal framework to support income stability and professional well-being. 

The 1995 Labor Law and the 2008 Labor Contract Law (amended in 2013) form the foundation of employment standards across the country:

• Employers must sign a written agreement with each employee. This contract outlines job responsibilities, compensation, work location, and other conditions (Labor Contract Law, Article 10).
  
• Contracts must clearly state terms such as working hours, pay, leave entitlements, and safety measures (Labor Contract Law, Article 17).
  
• The standard workweek in China is 40 hours, with two rest days. Flexible working hours may apply in some roles under the State Council 1995 Provisions.
  
• Employees who work beyond standard hours must receive overtime pay. Daily overtime is capped at three hours, and monthly overtime cannot exceed 36 hours (Labor Law, Article 41).
  
• Overtime compensation is set at 150% of regular wages on workdays, 200% on rest days, and 300% on national holidays like Chinese New Year (Labor Law, Article 44).
  
• Employers must pay salaries on a monthly basis and cannot delay payments without legal justification (Labor Law, Article 50).
  
• Workers are entitled to paid leave during official holidays, weddings, and funerals (Labor Law, Article 51).
  
• Employees dismissed from their roles must receive severance based on their length of service and final monthly salary (Labor Contract Law, Article 47).

The laws mentioned above support wage fairness and job security across China’s growing economy.

Average salary in China: Important FAQs

Let’s answer some of the most common questions about the average salary in China:

What is the average salary in China?

According to official data, the national average annual salary in urban non-private sectors reached approximately 120,700 CNY in 2023.

Which industries offer the highest salaries?

IT, financial services, and scientific research lead the rankings. IT professionals in urban non-private units earned an average of over 231,000 CNY annually.

Which cities have the highest salaries in China?

Shanghai and Beijing offer the highest average annual salaries, with figures of 229,337 CNY and 218,312 CNY, respectively.

Are salaries higher in private or non-private sectors?

Non-private sectors, such as state-owned or foreign-funded companies, generally offer higher and more stable wages than private enterprises.

Understanding these FAQs helps assess China’s labor market more effectively.