Driving in Shanghai

Summary: Driving in a new country can be daunting. These tips offer insight into what to expect when driving in Shanghai.

1. Consider Public Transportation Instead

Shanghai is a bustling city with a population of over 24 million people. The roads are often congested, and the driving habits of locals can be quite aggressive and unpredictable. Many expats and foreigners living in Shanghai prefer to use public transportation, such as the metro, buses, and taxis, which are plentiful and relatively inexpensive. The city also has a well-developed bike-sharing system.

2. Obtaining a Chinese Driver's License

Foreigners cannot drive in China with an international driver's license or a license from their home country. They must obtain a Chinese driver's license. The process involves a written test, which is available in English and other languages. You will need to provide a translation of your current driver's license, a health check, and your passport with a valid visa. It's recommended to contact a local driving school to help with the process.

3. Choosing a Car

If you decide to drive, smaller cars are recommended due to the heavy traffic and narrow streets. Electric cars are also becoming more popular in Shanghai due to the government's push for green energy, and there are many charging stations around the city. However, owning a car can be expensive due to high import taxes on foreign vehicles and the cost of obtaining a license plate.

4. Parking in Shanghai

Finding parking in Shanghai can be challenging, especially in the city center. Many residential complexes have their own parking lots, but they often charge a fee. Street parking is also available but can be difficult to find. The cost of parking varies depending on the location, but it is generally more expensive in the city center and cheaper in the suburbs.

5. Understanding the Traffic Rules

Driving in Shanghai requires a good understanding of the local traffic rules. For example, right turns on red lights are generally not allowed unless there's a green arrow. Also, cars are not allowed to stop in the yellow box at intersections. Traffic police are strict and fines can be high, so it's important to follow the rules.

6. Be Prepared for Aggressive Driving

Driving in Shanghai can be stressful due to the aggressive driving habits of locals. It's common to see cars changing lanes without signaling, ignoring traffic lights, and honking excessively. As a driver, you need to be alert and defensive at all times. It's also important to be patient and keep your cool in difficult situations.

SJB-Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model. Our clients benefit from their country’s most favorable tax environment by utilizing the efficient investment vehicles we offer. Our commitment to quality service is reflected in our stellar reviews, with over 300 testimonials boasting 95% five-star ratings.

Learn More Connect

Click connect to have our partner contact you via e-mail and/or phone.