Since i get paid in rmb i look at things in rmb. If back home earning AUD wil see things as AUD.

In general as I get paid in RMB I price things in RMB, and overall that gives me a similar standard of living I enjoyed in my previous career, although I'd been in that career 30+ years.

However, when you first get to China that is difficult as you really have no idea of the 'normal' price, both local and laowai price. For me this was further exacerbated by being married to a local girl who is well aware that if I am seen the prices go up. So now we usually go window shopping together agree what we want (i.e. she tells me what she wants and I eventually agree) and then she goes back 1 or 2 days later to get the local price. However, now after 2 years I"m coming to think in China price for all things apart from food and that is because my Mother-in-law buys all the food, I just earn the money.

I always looked at my monthly pay, and set aside a certain percentage to be sent home (about 70 per cent), which I immediately thought of in dollars.

The leftover 'spending money' for the month, I would entirely think of in yuan. 

I tend to compare prices on the basis "How long do I need to work to earn enough money to  buy this, in China and in Australia?" If the "time worked" in China is about the same or less than in Australia, I will buy it. If it is much higher in China, than I won't buy it, unless absolutely necessary. I assume a 35 hour week in both countries.

I have to think of it in terms of USD.  The way the various colored RMB notes remind me of Monopoly money, the value of the notes just doesn't register for some reason. 

Things always looked like the price was high because numerically they are. I always had to figure it out in dollars.

After a couple of months I stopped converting and now just judge prices in RMB, income is in RMB and expenses are in RMB

For day to day expenses I have a budget in RMB. For most everything else I convert it to dollars.

I'm always doing the calculations

it can help make the decision to buy or not

Anything less than 100RMB is "oh, that's less than $16". Anything over that must be compulsively converted to USD, on the bright side I'm getting really good at dividing by 6.23.

I find it easier just to convert my salary and expense allowance right away from dollars into Yuan as it helps me budget and keep track of expenses easier.  Everything here is in RMB so why convert it all the time?  I just do it at the end of the month.

Besides it's pretty easy to remember every time you drop a 100 it's about $16...close enough for me...until I drop 1200 in an expat bar in one night...then in the morning I convert it and say "I spent HOW much?  Damn!"

I usually convert the prices.

... both but, if is in usd was better....

Always calculate the Prices back into Sterling. Nasty habit and can't seem to shake it even after 3 and half years

As I have been in China for more than six years now, (back in 2006 the currency for one US dollar was 8.06rmb) I tend to calculate the transaction on a US currency level and then ask myself ,'what would I pay for the item in question back home, now?'. Then I evaluate the quality of  the article and then I make my decision.  In most cases it is good, but as Huge G. mentioned previously, it is always better for a foreigner to have a Chinese friend make the purchase for you, unless your in a supermarket.  There, at least,  everything is bar-coded and there is no haggling over prices. All I can say to you all is; 'Buyer beware and do shop around' .

I usually only convert if I'm buying imported goods. The price is sure to be higher than back home but in my opinion there's a limit to how overpriced I'm willing to pay for imported stuff.

local goods I generally just compare the price to other supermarkets/stores and if its cheaper elsewhere I go somewhere else.

I always convert. That gives me a good understanding on how much some things are overpriced here compared to my home country.

Works the other way round too tough, when I find things cheaper.

Helps to keep track on the increasing cost of living here compared to the decreasing back home, helping defining the timeline for leaving the country.

When I first started coming to China, I converted everything and was amazed how cheap everything was.  Now that I live here, I do not think about it as much.  However, I do not know where most of these people are coming from (nali, nali).  Almost everything is cheaper in China!!  Once in a while, because I think in Yuan now, I think something is tai gui!  Then, I convert it to dollars and tell myself it is much cheaper than in the states, so don't worry about it.  Really, I think 20 yuan is too much for lunch!  What is wrong with me?  That is barely over three dollars.  You cannot get a meal at Burger King in America for three dollars!  Actually, I save about 80% of what I make here.  I don't drink, smoke or have a life  .

I'm trying to think of something funny to say...   I suppose I convert it like I always have,,,, like damn that shit is expensive !!    where the fuck does china come off asking between 3 and 8 kuai for a beer o n the frickin street !   dunno how long u guys have been here (Asia) or where u r from, but china totally fucked up when they started Western prices.  u pay 3usd for a cup of coffee in China ??  that is tiotal fkn bullshit.  it's wrong,, hard to explain why,, but friggin 18 kuai is money to a lot of people.  Prices have gone Western, but earning capability has not.  3 yuan for a bottle of water ??

1 RMB is worth 0.95 of my native currency so I consider them the same.