Backpacking through China is one of the most underrated, thrilling adventures a budget traveler can experience. While modern mega-cities like Shanghai and Beijing can stretch your wallet, China contains an immense, highly affordable travel landscape. Thanks to the world’s most extensive high-speed rail network and an abundance of high-quality youth hostels, exploring jaw-dropping karst mountains, ancient villages, and hidden valleys is incredibly budget-friendly.
To help you map out an epic, low-cost itinerary, we have broken down the 20 best wallet-friendly destinations into a two-part series. In Part I, we unlock the first 10 ultimate backpacker destinations in China, packed with logistics, street food guides, and cheap social stays.
Quick Budget Overview of Part I Destinations
1. Yangshuo (Guangxi) – The Karst Paradise
How to Get There
Take a high-speed train to Yangshuo Railway Station. From the station, avoid pricey private taxis; instead, hop on the dedicated local shuttle bus directly to West Street or Xingping Old Town for just 5–15 RMB. Alternatively, take a public bus from nearby Guilin for 25 RMB.
Must-Try Street Food
Skip the expensive riverfront restaurants serving "Beer Fish" and hunt down local alley stalls for Guilin Rice Noodles (Guilin Mifen). A massive bowl topped with pickled long beans, roasted peanuts, crispy pork flakes, and a rich, spicy broth costs a mere 6–10 RMB.
Best Backpacker Hostels
Sudder Nuance Hostel (or Sudder Street): Famous among international backpackers for its clean, modern dorm beds, stunning outdoor rooftop common area framing the jagged karst peaks, and affordable e-bike rentals (approx. 40–50 RMB/day).
2. Dali Old Town (Yunnan) – The Backpacker Mecca
How to Get There
Dali is effortlessly linked via bullet train from Kunming (the capital of Yunnan province) in just 2 hours, costing roughly 145 RMB. From Dali Railway Station, take public bus No. 8 straight to the East Gate of the Old Town for 2 RMB.
Must-Try Street Food
Wander the cobblestone lanes outside the tourist core and pick up Rushan (Baked Goat Cheese)—strips of local cheese wrapped around a stick, grilled over charcoal, and brushed with sweet rose petal jam (5–8 RMB).
Best Backpacker Hostels
The Jade Emu International Youth Hostel: A legendary, highly social compound featuring a massive courtyard, pool tables, an inexpensive western/local bar, and highly reliable English-speaking staff who organize daily group dinners and Erhai Lake bike loops.
3. Tiger Leaping Gorge (Yunnan) – World-Class Trekking
How to Get There
Catch an early morning long-distance public bus from Lijiang Bus Station or Dali straight to Tina’s Guesthouse or Qiaotou (the trailhead) for around 40–50 RMB.
Must-Try Street Food
While trekking the high trail, food options are limited to family-run guesthouses. Fuel your hike with Naxi Baba, a dense, comforting flatbread layered with scallions or sweet brown sugar, washed down with a steaming thermos of energy-packed Yak Butter Tea.
Best Backpacker Hostels
Halfway Lodge: Located right on the high trail, famous for its world-renowned "Inax Toilet" viewing deck overlooking the sheer face of Jade Dragon Snow Mountain. Clean dorm beds cost around 50–70 RMB.
Tina’s Guesthouse: The ultimate low-cost valley base camp where backpackers congregate to catch return buses.
4. Chengdu (Sichuan) – Pandas and Slow-Paced Spice
How to Get There
Chengdu is a massive aviation and high-speed rail hub. You can arrive via bullet train from almost any major Chinese city. To explore the city, utilize the world-class subway system; rides start at just 2 RMB.
Must-Try Street Food
Avoid the high-end tourist hotpot spots and head straight to Kuixinglou Street for Chuan Chuan Xiang (Street Skewers). You pick your own meat and vegetable skewers from open fridges (costing a tiny 0.5 to 1.5 RMB per skewer) and boil them in a communal, fiery Sichuan chili broth.
Best Backpacker Hostels
POSHPACKER | Chengdu Mix Hostel (Cicada Zen Yard): A multi-award-winning hostel housed in a stunning, traditional courtyard compound near Wenshu Monastery. Famous for its free dumpling-making parties, hotpot nights, and ultra-cheap dorms.
POSHPACKER | Chengdu Flipflop Hostel: Located steps from Taikoo Li, boasting an unbeatable central location and an active social rooftop bar.
5. Xi'an (Shaanxi) – Silk Road Heritage and Street Feasts
How to Get There
Xi'an North Station is one of China’s largest high-speed rail intersections. To visit the famous Terracotta Warriors cheaply, take public metro Line 9 to Huaqing Pool Station, then transfer to public bus No. 613 for a total transit cost of under 15 RMB (saving you from expensive agency tour buses).
Must-Try Street Food
The historic Muslim Quarter (Huimin Jie) is a haven for cheap eats. Grab a bowl of Liangpi (Cold Wheat Noodles) tossed in black vinegar, garlic water, and rich chili oil (7–12 RMB), paired with Rougamo, a crispy flatbread stuffed with slow-braised juicy pork or beef.
Best Backpacker Hostels
Xi'an Xiangzimen Youth Hostel: Located right inside an authentic traditional courtyard house right next to the South Gate of the Ancient City Wall. It offers exceptionally cheap bike rentals to ride the full 14km wall perimeter.
6. Lijiang Old Town (Yunnan) – Wooden Bridges and Cobblestone Lanes
How to Get There
Lijiang is easily accessible via high-speed train from Kunming (3.5 hours) or Dali (1 hour). Take public bus No. 4 or 18 from the train station to the edge of the historic UNESCO heritage zone for just 1–2 RMB.
Must-Try Street Food
Explore the local wet markets just outside the tourist barrier to find Jidou Liangfen (Chickpea Jelly). This savory snack is sliced into strips, pan-fried until golden and crispy on the outside, and dressed with spicy soy-garlic vinegars (6–10 RMB).
Best Backpacker Hostels
Lijiang Garden Inn / Youth Hostel: Tucked into a quieter, elevated corner of the old town, offering a beautiful wooden terrace with panoramic views of the black-tiled roofs, free laundry facilities, and a cozy communal fireplace.
7. Jianshui (Yunnan) – The Scholars' Hidden Haven
How to Get There
Take a budget-friendly regional slow train or a modern high-speed train south from Kunming to Jianshui Station (approx. 2 hours). A local city bus connects the station to the magnificent Chaoyang Gate for 2 RMB.
Must-Try Street Food
Jianshui is legendary across China for its water quality, which yields the country’s most famous tofu. Sit around a communal mesh grill at a local market stall for Jianshui Charcoal-Grilled Tofu. The vendor flips tiny, pungent, puffed squares of tofu over coals—you eat as many as you like (0.5 RMB each), and the vendor counts corn kernels in your bowl at the end to calculate your cheap bill.
Best Backpacker Hostels
Jianshui Lin'an Youth Hostel: Features beautifully preserved Qing Dynasty architectural styling, wooden bunk setups, and an incredibly peaceful courtyard garden perfect for long-term budget stays.
8. Fenghuang / Phoenix Ancient Town (Hunan) – Stilt Houses on the River
How to Get There
Take a bullet train directly to Fenghuang Gucheng Railway Station. From there, hop on the dedicated maglev train or a tourist shuttle bus running straight into the scenic river valley for about 15–25 RMB.
Must-Try Street Food
To eat cheaply, cross the stone stepping bridges away from the main commercial strip and find small local diners serving Miao-style Sour Fish Soup (Suancai Yu). It features fresh river fish simmered with local pickled greens and spicy wild herbs in a comforting pewter hotpot.
Best Backpacker Hostels
Fenghuang Riverside Youth Hostel: Offers exceptionally cheap dorm beds with shared balconies extending directly over the Tuojiang River, giving you prime views of the illuminated wooden stilt houses (Diaojiaolou) at night without paying premium hotel rates.
9. Pingyao Ancient City (Shanxi) – Imperial Imperial Grandeur
How to Get There
Take a bullet train to Pingyao Ancient Town Station (3 hours from Beijing). From there, public bus No. 108 brings you right to the massive, unchanged stone city gates for 2 RMB. Entering the walled city itself is completely free.
Must-Try Street Food
Try Pingyao Sliced Beef (Pingyao Niurou), an exceptionally tender, cured cold meat dish with a centuries-old history. Pair it with Shanxi Cuanpian, a bowl of rustic, hand-torn oat noodles tossed with fresh garlic, tomatoes, and dark aged vinegar.
Best Backpacker Hostels
Pingyao Zhengjia International Youth Hostel: Housed inside a wonderfully atmospheric, authentic 200-year-old Qing Dynasty courtyard home. Backpackers sleep on cozy, wide traditional Kang platform beds retrofitted for modern comfort.
10. Zhangye National Geopark (Gansu) – The Rainbow Mountains
How to Get There
Zhangye is a prime stop along the historic Silk Road rail route. Take a high-speed train to Zhangye West Station, then catch a direct public tourist bus from the Zhangye South Bus Station straight to the Geopark entrance for around 15 RMB.
Must-Try Street Food
Fuel your desert explorations with Minle Hand-Pulled Noodles. These thick, chewy wheat noodles are stretched to order, dropped into a robust, cumin-spiked beef broth, and topped with generous layers of local chili paste and fresh cilantro (10–15 RMB).
Best Backpacker Hostels
Zhangye Oasis Youth Hostel: Highly celebrated for its incredibly knowledgeable tour desk that coordinates low-cost shared minivans for backpackers wanting to split the transit costs to the colorful Danxia landforms and the remote Pingshanhu Grand Canyon.
Pro-Tip for China Backpackers
To save big on your budget, skip the pricey domestic flights and utilize Overnight Sleeper Trains (Hard Sleeper Class / 硬卧) for long distances. Not only do you secure safe transportation across provinces for a fraction of the cost, but you also completely eliminate the expense of a night's accommodation!
Check out another 10 incredible destinations for backpackers on a budget!
