While living in China is certainly cheaper than living in European countries and the United States, that might not be so in the capital. Beijing's is China's most expensive city, and many expats coming over with ambitions to save money might leave disappointed.
However, it is definitely possible to have a decent, more "local" life and save a lot of money without necessarily cutting down on comfort, travelling and entertainment. Just follow a few tips!
1. Show your bargaining skills: Chinese vendors will assume that, because you are a foreigner, you have tons of cash. And even a Chinese friend once took their side, wisely explaining me, "You are European, so you have more, and it's right that you pay more." With some Chinese vendors, shops, and markets this can mean a 400% mark up. Bargaining is part of Chinese culture. If you don't have Chinese friends around to bail you out, consider learning a few Chinese words that can help you lower the price, as well as pretending to walk away as a negotiation tactic. Chinese shops want to sell quickly, you have the leverage.
2. Beware of coffee, food, beer, and tea ceremony scams in sightseeing places and nightlife areas. Girls or students lure you into bars and restaurants they have an agreement with, invite their friends and pile up mountains of expensive dishes. In the end, guess who will be left with a bill that makes your heart sink and your eyes pop?