China Travel on a Budget: How to Save Money While Exploring

Hello, friends! Lukas here.

When people plan a trip to China, they often think it will be very expensive. And yes, if you stay at 5-star hotels and only eat in fancy tourist restaurants, you will spend a lot of money! But what if I told you that my friend Hardy and I, who live here, never pay full price for anything?

This guide is not about asking you to compromise your quality of life. We don’t want you to have a bad experience! This is about helping you “protect your wallet” (as we say in Chinese, 护住钱包 – hù zhù qiánbāo) while still having an amazing, high-quality trip.

The secret is to use the same tools and tricks that we locals use every day. The most important tool in your arsenal will be a “super-app” called Meituan (美团). This one app can get you discounts on food, taxis, hotels, movie tickets, and almost everything else.

So, are you ready to learn how to travel smart? Let’s save some money!

1. Food: Eat Like a King for (Almost) Nothing

Food is the most important part of traveling, right? In China, you can eat cheap and delicious food 10,000 times. The key is knowing where to find it and how to pay for it.

Forget Tourist Traps, Use Local Apps

First rule: If a restaurant has a very flashy English menu and is right next to a big tourist spot, it is probably 40% more expensive and 40% less delicious. We locals almost never eat at these places.

meituan app

Here is what we do instead:

  • Master the Delivery Apps: Meituan & Ele.me Right now, China is in the middle of a huge “food delivery war,” especially between Meituan (美团) and Ele.me (饿了么). (JD.com also does delivery, but it’s more for groceries). This “war” is fantastic news for you! It means they are fighting for customers with huge discounts and coupons.You can order anything—from breakfast noodles to a full hot pot feast—delivered to your hotel or hostel, often for less than the cost of eating in the restaurant. Before you buy, compare the price on both Meituan and Ele.me. Sometimes one has a better discount on a specific shop.
  • The Magic of “Group Buy” (团购 – Tuángòu) This is the biggest secret, and it’s also on the Meituan app! It’s called tuángòu, which translates to “group buying,” but you don’t need a group. It’s just a pre-paid voucher.Before you walk into a restaurant, open Meituan and search for the restaurant’s name. You will almost always find a voucher, like “Pay ¥68 for a ¥100 voucher” or a special set meal for 30% off. You buy the voucher on your phone, show the QR code to the staff when you pay, and you instantly save money. We do this every single time we eat out.

How to Find Authentic Local Food

Okay, so how do you find the good cheap places? Forget TripAdvisor. The two tools we use are:

  1. Xiaohongshu (小红书): This is “Little Red Book,” which is like China’s Instagram, but 100% focused on reviews and lifestyle tips. Search for “[Your City Name] + local food” (e.g., “成都 本地美食”). You will find thousands of posts from real locals. The most important part? Read the comments! The comments are where people will say “This place is a tourist trap now” or “I am a local and I’ve been eating here for 10 years, it’s the real deal.”
  2. “Fly Restaurants” (苍蝇馆子 – Cāngyíng Guǎnzi): We talked about these in our Chengdu Food guide. These are the small, sometimes ugly-looking shops hidden in little alleys. They are cheap, and the food is often the best in the city. If you see a tiny place with a big line of locals, just get in that line.

One Last Pro Tip: Free Drinks!

Many new or popular shops (especially for tea or snacks) will offer a free drink or a discount if you “check-in” (打卡 – dǎkǎ) on social media. This usually means just posting a few nice photos of their shop on your Xiaohongshu or WeChat Moments. Just point at the sign and ask the staff. It’s an easy way to get a free ¥15 ($2) plum juice!

2. Clothing: How to Buy Without Getting Scammed

Did you forget a jacket? Or do you want to buy some tea or souvenirs? Please, do not buy them from a souvenir shop. You are paying the “foreigner price.”

  • Online Shopping (If You Can): If you are staying in one place for more than 3-4 days and can get help from your hotel or hostel, online shopping is the cheapest way. We don’t use Amazon. We use Taobao (淘宝), which has everything in the universe. For the real budget option, we use Pinduoduo (拼多多). Hardy is the king of Pinduoduo! It’s famous for being unbelievably cheap because it uses a “group buy” model. You might get a t-shirt for ¥15 ($2) or a charging cable for ¥5 ($0.70). The quality can be a surprise, but for simple things, it’s a lifesaver.
Hehuachi Market
  • Local Wholesale Markets (批发市场 – Pīfā Shìchǎng): Every city has these. They are huge, chaotic buildings with hundreds of tiny stalls selling clothes, bags, toys, tea, and everything else. For example, in Chengdu, we have Hehuachi (荷花池). This is where you MUST bargain (砍价 – kǎnjià). It’s a game. The seller will say a high price; you must act shocked. My tip: Start by offering 50% of their first price and slowly negotiate up. It’s fun, and you’ll get a much better deal.

3. Accommodation: Sleep Well for Less

Your hotel will be your biggest expense after your flight. But it doesn’t have to be.

  • Youth Hostels (青年旅舍 – Qīngnián Lǚshè): This is not just for “youth”! In China, hostels are very popular with travelers of all ages. You can get a cheap bed in a dorm, but most hostels also offer private, clean, and stylish rooms for a fraction of the price of a hotel. They are also the best place to meet other travelers and get tips. Use apps like Ctrip (携程 – Xiéchéng), Booking.com, or Agoda to find them.
  • B&Bs (民宿 – Mínsù): These are the “Airbnb of China.” You can find them on apps like Tujia (途家) or even on Meituan. You can rent a room in a local’s apartment or get a whole apartment for yourself. This is a great way to feel like you are really living in the city.
  • The “Location” Trick: Don’t stay at the exact city center (like People’s Square in Shanghai or Chunxi Road in Chengdu). The prices are 50% higher. My advice: Find a place that is one or two subway stops away from the main tourist center. You will save a lot of money, and it will be much quieter. As long as you are near a subway station, you are connected to the whole city.

4. Transportation: Get Around Like a Local

Getting around China is super cheap and easy if you avoid the expensive “tourist taxis.”

  • The Subway (地铁 – Dìtiě) is Your Best Friend: The subway systems in Chinese cities are amazing. They are new, very clean, safe, and have signs and announcements in both Chinese and English. A ride across the entire city often costs less than ¥6 ($0.84). This is the #1 way you should travel.
  • How to Pay (The Easiest Way): Forget buying a physical bus card. It’s a hassle to buy, you have to load it with cash, and getting your deposit back is complicated. Here is the golden tip: Use Alipay (支付宝 – Zhīfùbǎo).
    1. Open your Alipay app (you must have this set up anyway).
    2. On the homepage, tap “Transport” (or sometimes “More” > “Transport”).
    3. Select the city you are in and get their “Travel QR Code” (出行码 – Chūxíng Mǎ).
    4. That’s it! You now just scan this one QR code to get on all subways and most city buses. It automatically charges your account. It is so, so easy.
  • Taxis: The Smart Way Sometimes you need a taxi. Do not just hail one on the street, especially from a tourist spot (they might not use the meter). Use a ride-hailing app. The biggest is DiDi (滴滴出行), which is China’s Uber. But here is the pro-budget-tip: Use the Meituan app! It has a “Taxi” function that compares the prices from many different ride-hailing companies (like DiDi, Cao Cao, T3, etc.) all at once. It will find the cheapest car for you and often give you an extra 10-20% off coupon. This is what I use every time.

5. “Play”: Free Entertainment & Culture

The best things in life (and in China) are often free!

  • Explore the Parks (公园 – Gōngyuán): Parks in China are not just grass and trees. They are the living rooms of the city. In the morning, you will see groups of elderly people practicing Tai Chi, singing opera, or doing calligraphy on the ground with giant water-brushes. In the evening, the parks explode with hundreds of “Square Dancers” (广场舞 – Guǎngchǎng Wǔ). It’s a free cultural show, and it’s wonderful.
  • Visit a Wet Market (菜市场 – Càishìchǎng): This is my favorite free activity. Forget the sterile supermarket. A local wet market is a sensory explosion of sights, sounds, and smells. You can see strange vegetables you’ve never seen, watch butchers work, and see vendors making fresh tofu. It is the most authentic window into the daily life of the Chinese people. (This is one of my favorite topics! We are planning a future blog post on “Chengdu’s 10 Most Interesting Wet Markets.” I can’t wait to write that for you.)
  • Visit University Campuses: This sounds strange, but major universities like Sichuan University (in Chengdu) or Peking University (in Beijing) have beautiful, large campuses that are like giant parks. They also have very cheap and surprisingly good student cafeterias if you can find a student to help you pay with their card!

Lukas & Hardy’s Exclusive Budget Tips (A Quick Summary)

If you remember nothing else, remember these!

  1. Meituan is Your #1 App: Use it for food vouchers (团购), taxi discounts, and booking B&Bs.
  2. Alipay is Your #1 Payment Tool: Use its “Transport” QR code for all subways and buses.
  3. Buy Water at Convenience Stores: A bottle of water at a tourist site is ¥10. At a local biànlìdiàn (便利店 – convenience store), it is ¥2.
  4. Book High-Speed Trains in Advance: Use the official “Railway 12306” app. A “Second Class” (二等座) seat is extremely comfortable and much cheaper than First Class.
  5. Get Your SIM Card in the City: Do NOT buy a SIM card at the international airport. They are a total rip-off. Go to any official China Mobile (中国移动) or China Unicom (中国联通) store in the city with your passport.

Frequently Asked Questions (FAQs)

Q: Is China an expensive country to visit? A: It can be, but it doesn’t have to be. Big cities like Shanghai can be as expensive as New York or London if you want them to be. But in general, food and transportation are much cheaper than in the West.

Q: How much money do I really need per day? A: This is so hard to answer! But as a general guide (not including hotels):

  • Backpacker Budget: (Hostel dorm, street food, buses/subway) – $30-50 USD per day.
  • Mid-Range Budget: (B&B, mix of street food and nice tuángòu meals, subway + occasional taxi) – $70-100 USD per day.

Q: Is it easy to bargain in China? A: At local markets, souvenir stalls, and wholesale markets, YES! You must. It’s expected and part of the fun. But in a proper restaurant, a supermarket, or a brand-name clothing store, the price is fixed. Don’t try to bargain there, it will be very awkward.

Q: Can I just use my international credit card? A: 99% of the time, no. Big international hotels will accept it, but almost no one else will. You must link your credit card to Alipay or WeChat Pay. This is the single most important piece of advice. China is almost 100% cashless.

Conclusion

Traveling on a budget doesn’t mean you have a worse trip. In China, it actually means you will have a better trip.

It forces you to get off the tourist path. It makes you eat at the little “fly restaurants” where the food is incredible. It makes you take the subway with everyday people. It makes you travel smarter, and in the end, it makes you travel more like a local.

And that’s the whole point, isn’t it?

Happy (and smart) travels! Your friend, Lukas