I'm a US citizen in the SF bay area, bootstrapping a web company by myself, and I'm heading out to Beijing this summer. PG talks a lot about reaching 'ramen profitability' and there's no easier place to hit that than China. It's going to cost me about $400 a month to live (frugally), and if I needed to, I could teach English for about $60 / hr. Worst case scenario, a native English speaker could dedicate one or two d…
Fresh graduates from good universities in Beijing and Shanghai will typically be from 2000-5000RMB per month ($4k-$10k USD per year). There are some nasty Chinese labour laws you should be aware of if you want to hire people. They are also not as good for software development positions in a startup as a graduates from Stanford or MIT, that's pure fantasy.
Additionally you can't really set up a proper company in China as a foreigner the way you could in the US. There's a couple structures you can use but they take time to setup and have some tricky considerations.
That being said, Beijing is good to bootstrap an Internet startup. I did it and it's going well. There's a whole host of pitfalls and it isn't all roses but still a great experience.