The Next Shangri-La

For the past two decades, the Old City of Dali in China’s southwestern province of Yunnan—a picturesque burg with a temperate climate and auspicious feng shui —has been a destination for Chinese urbanites and Western travelers looking to escape the country’s industrial grind. Starting in the 1990s, when more than a dozen well-known Chinese painters built studios here, cultural elites have migrated to Dali in hopes of it being the next Shangri-La—that fictional utopian valley hidden deep in the Himalayas in James Hilton’s 1933 novel Lost Horizon .

“Dali isn’t your average little city,” says painter Han Xiangning, who has made Dali his home after living abroad for four decades in New York. Han’s residence—a white minimalist compound with its own private lagoon—moonlights as a gallery featuring art by luminaries such as Andy Warhol, Roy Lichtenstein, Zhang Xiaogang, and Fang Lijun. Because Dali tends to be so welcoming to outsiders, and because it’s a bit of an ethnic melting pot, Han likens it to a “mini–New York City,” albeit one perched on the banks of the idyllic Erhai Lake and framed by the snowcapped Cang mountains.

The city’s inclusive nature may have something to do with the fact that Dali was once the capital of the independent Nanzhao Kingdom, which the Chinese empire conquered by force six centuries ago. The majority of people in the area are in the Bai ethnic minority, a Sino-Tibetan community famous for its artistic creativity. Part of the area’s charm derives from its graceful buildings erected in the traditional Bai architectural style, with upturned roof gables evocative of Thai temples. The architecture enchanted American gallery owners Brian and Jeanee Linden, who opened a 14-room guesthouse and cultural center in a lovingly restored historic courtyard mansion about 18 kilometers outside the Old City. The Linden Centre’s rooms are stocked with valuable Chinese antiques, and the hotel offers its own piece of paradise with morning tai chi sessions, a Zen meditation room, and a rooftop terrace with uninterrupted views of the mountains. “Here’s where we found our dream,” says Brian Linden, who sold the couple’s home in the U.S. to bankroll the renovation.

The No. 1 reason American author Dan Reid has rented a house in Dali is its aura of old China.

China Expat Life Outside the Big City

Expats tend to go where the work is, so you won't find too many expats living in China's villages or small towns. There are plenty of smaller cities (a relative term when speaking about Chinese cities) where expats live, work and enjoy many of the conveniences that Beijing and Shanghai expats have. Off the top of my head, I can think of Xiamen in Fujian province and Kunming in Yunnan province. They are smaller cities with growing expat populations because they have an appealing atmosphere and climate. Located on the southern coast on the Taiwan Straight, Xiamen has a climate many Westerners love. It can get hot and humid in the Summer, but the Winter is relatively mild. With just a handful of foreign restaurants and coffee places Western influence was hard to find a few years ago, but now there are even six Starbucks locations in Xiamen. Many expats live on Gulangyu, a small island that's part of the city. A smaller city, called the Land of Eternal Spring, Yunnan has year round mild weather that's ideal for enjoying the outdoors. It's a relaxed place and most expats hang out around the Green lake area. Kunming is a popular tourist destination for Chinese and foreigners alike and it's one of the best places in China to buy outdoor gear and backpacking supplies. Yunnan province is said to have some of the best weather and scenery in China where Kunming is considered the gateway to Yunnan and a good starting point for many destinations. If you choose to move to southern China, take the same health precautions you would moving anywhere else, but also consider getting a malaria vaccine, especially if you plan to be outdoors enjoying the weather and scenery. Keep in mind too that Western style hospital options may not be readily available in case of emergency. When you arrive, ask other expats where to get recommended medical care if needed.

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