Driving in China on an Australian licence

Short answer: you can't legally drive in China on your Australian licence or an International Driving Permit. You either convert to a Chinese licence by passing a theory test, get a temporary permit, or do what most Aussies in Shanghai do and let someone else drive.

The short version

China doesn't recognise the International Driving Permit or foreign licences on their own [4].
After three months in China, you can swap your Australian licence for a Chinese one by passing the Subject 1 theory test, with no practical test [1].
The test is offered in 15 languages, takes 45 minutes and needs 90 out of 100 to pass [1].
Short-term visitors can get a temporary driving permit for up to three months, and longer-stay foreigners for up to a year [2].
A Chinese licence is valid for six years [3]. Keep your Australian licence current too.

Why your Aussie licence doesn't work here

Australians are used to hiring a car almost anywhere with their state licence and an IDP from the motoring club. China is different. It doesn't recognise the IDP or foreign licences [4], so a hire car company or a police officer will want a Chinese licence or a Chinese temporary permit.

There's no licence-swap deal between Australia and China. Shanghai lists only a handful of countries whose licence holders may skip the theory test under mutual recognition, and Australia isn't one of them [1].

Insurance matters too. Driving without a valid Chinese licence or permit is likely to void your insurance and leaves you personally exposed after a crash.

Your options compared

Option	Who it suits	Validity	Test	Where
Convert to a Chinese licence	Residents in China more than three months [1]	Six years [3]	Subject 1 theory test, 90/100 [1]	Vehicle Management Office branches [1]
Temporary driving permit	Visitors and short stays [2]	Up to three months, or up to one year for longer stays [1][2]	Short session on traffic law [2]	Vehicle Management Offices, airport police counters, online at sh.122.gov.cn [2]
Full licence from scratch	People with no valid foreign licence [3]	Six years [3]	Subjects 1 to 4, driving school required [3]	Licensed driving school
Don't drive	Most Aussies in Shanghai			DiDi, taxis, Metro, a hired driver

Converting your licence, step by step

You can apply once you've stayed or lived in China for more than three months, with a visa, stay permit or residence permit valid for more than three months [1].

Check your Australian licence is valid. It must be current. If it's due to expire, renew it before you leave Australia, since some states make renewing from overseas awkward. See our guide to your Australian driver's licence abroad.
Get a Chinese translation. Accepted options are a translation company with its seal and a stamped copy of its business licence, a notarised translation from a notary office, or a translation issued by your country's embassy or consulate in China [1]. The Shanghai government lists the Shanghai Interpreters' Association and SISU Translation Service as options [1].
Do the medical. A designated local hospital checks your vision, hearing and colour vision and gives you a driver's physical examination report [1].
Gather your documents. Passport and copy, residence permit and copy, your accommodation registration form, your Australian licence and copy, the translation and the medical report [1].
Book and lodge. Go to one of four Vehicle Management Office branches, Monday to Friday, 9 am to 5 pm, including over lunch [1]: - First Branch: 2999 West Huaxia Road, Pudong - Second Branch: Gate 3, 179 Qinchun Road, Minhang - Third Branch: 2638 Hunan Highway, Pudong - Fourth Branch: 299 Anfen Road, Baoshan
Sit Subject 1. You get two attempts per booking. If you fail both, you pay and book again [1].
Collect your licence. If you only need Subject 1, the Chinese licence is usually issued on the spot after you pass [1].

The theory test

The test is 100 questions drawn from a large bank, covering traffic law, signs and safety [3][4]. You need 90% [1], which is a tougher pass mark than most Australian learner tests. Some questions are pure memory, such as point deductions and fines for specific offences. The 45-minute limit is generous [1].

How to prepare:

Practise in English. The test is offered in 15 languages [1]. Practice apps and question banks in English are easy to find. Do full mock tests until you're scoring 95 or above.
Watch the translation. Expect a few clumsy English questions. Learning the logic behind the rules helps more than memorising the wording.
Learn the differences. China drives on the right. Right turns on red are often allowed unless signs or arrows say otherwise, and the hand and lane signals differ from home.

Fees for the test and licence aren't listed on the official English pages, so ask at the counter.

The temporary driving permit

If you're in Shanghai short-term, or want to drive before you've been here three months, the temporary permit is the option [2].

Who: foreigners staying short-term who need to drive. The vehicle class must match your foreign licence [2].
Hire cars: only small cars (C1) or small automatics (C2), and you must be at least 18. Carry the rental contract while driving [2].
Documents: passport, your Australian licence and a Chinese translation [2].
Process: have your photo taken, fill in the form, attend a session on Chinese road law, and the permit is issued on the spot [2].
Where: the four Vehicle Management Offices, counters at Hongqiao and Pudong airport police stations, or online through the Shanghai traffic management platform [2].
No permit if you have unresolved traffic offences, a hit-and-run record or 12 points on the clock in China [2].

Drivers aged 70 or over must first pass a capacity test [2].

Is driving in Shanghai worth it?

For most Australians, no. Here's why:

Traffic: Shanghai's roads are crowded, scooters come from every direction and drivers merge with confidence.
Plates: owning a car means getting a Shanghai number plate, and petrol-car plates are rationed. Ask a local dealer how plates currently work before you buy.
Parking: spaces in central Puxi are scarce and expensive.
Alternatives are cheap: a taxi starts at RMB 14 for the first 3 km, then RMB 2.7 per km [5]. The Metro covers most of the city.

When driving does make sense

You live in Qingpu, Minhang or the outer Pudong suburbs, near the bigger international schools.
You've got kids and gear for weekend trips to Hangzhou, Suzhou or the water towns.
You want to explore rural China and are comfortable with the risk.

Hiring a driver

Many expat families and companies employ a driver. Some employers include a car and driver in a senior package. If you hire one privately, agree pay, hours, overtime, holidays and who pays fuel and tolls in writing. Ask whether the driver uses their own car or yours, and who is insured.

When you move home

Keep your Australian licence valid while you're away, because your Chinese licence won't make getting it back any easier. Each Australian state and territory sets its own rules for overseas licences, including which countries' licences can be swapped without tests, so check with your state road authority before you rely on a Chinese licence back home.

Got a question about the test centre or the medical? Ask in Cooee China, our Facebook group for Australians in China (join here). Someone will have done it last month.

Driving in China on an Australian licence: the theory test, the temporary permit and why most don't bother