Competitive is another way of saying, in line with our competitors. If the local market pays peanuts, then peanuts plus is competitive. Usually if an employer puts competitive pay in an ad, you know it won't be stellar.

The assumptions for FT contracts are usually 16-20 teaching hours (paid) plus class prep time (normally not paid) plus office hours (not paid).
In a school the teaching hours are usually held between the hours 8 am and 5 pm, M-F. In a language centre the hours are usually all weekend, plus 4 pm to 9 pm M-F.
If you are on salary, expect them to work on the hourly rate x hours per week x four (yes that is only 20 days). However, you do get overtime for working extra hours, and most employers will deduct if you work fewer hours. Schools will often pay you for the Spring Holiday, a few for summer (if you resign).

What would that be today? 1200-1500?

@927 is right to aim for post graduate qualifications. Not only are they much harder to achieve, but employers recognize this. Post-grad qualifications show that you are able to really learn, work on your own, are not looking for easy options, and realize that you are not entitled to an easy life but you are willing to work for your future.

Can anyone comment on rents over this period?

I have spoken about Kunming, now a little of Shanghai. When I arrived in Shanghai in 2004, bicycles and mianbaoche (used as unlicensed taxi minibus) were still allowed in the downtown area (since banned). There were only really three places you could buy imported groceries, the supermarket under the Portman Hotel, the Pines in Jinqiao, and Carrefour in Gubei (where the Japanese expats lived). There were only a handful of expat owned bars, Big Bamboo, Blue Frog (Jinqiao), there were no foreign bars etc. in Superbrand Mall, unless you count McD/KFC.
You could buy Chinese wine for 12rmb, and cheap imported wine for 50rmb, then the Chinese wine craze hit. Many wines doubled in price in a year, and I started seeing more expensive Chinese wines at 300+ a bottle. Beer was just under 3rmb in the local supermarket. KFC lunchtime meal deal for 15rmb (1 piece, fries, small soda). Breakfast steet food (Shandong jiebin) 1.50rmb. Luchtime big bowl of fried rice or noodles was 5rmb.
Shanghai urban fringe stopped just past the Science Museum, not it goes on much further. Shanghai only had 4 metro lines, now it has 14. We once got a flight from Kunming to Shanghai for less than 300, not a popular route.

Teacher pay was similar. In 2005 I worked in language training companies, one paid 12K, the other paid 18k. In 2006 I moved to Zhengzhou, the university only paid 5500, and I envied an expat maths teacher getting 13k in a local middle school. Compare those with today’s salaries.
The visa office was crazy, join queue A, get to the front and be told you should be at counter D. Queue again for 20 mins, then be told you need to go to another counter first, repeat, be told you need another document, etc.

Same palaver in hospitals. Free for all queueing in banks. Much more efficient queuing systems everywhere today.