Crikey, this is a case of horses for courses!

Depends on you, the type of person you are, what you want, and to a large degree the same things on part of the respondent.

The big tier 1 cities pay about 30 - 50% more than the lesser cities, but then the costs of living are higher. Of course, in general the bigger the city, the bigger the expat community and so the less the culture shock CAN be as you can isolate yourself in the expat community if you so desire. Additionally there are many more jobs available but the bureaucracy is much more rigidly enforced. (Well as rigidly as anything is enforced in China.)

The smaller cities are generally the opposite of what I have written above.  Personally unless you have a decent level of Chinese and / or are married to a Chinese person, I would go to one of the bigger cities, as without either you will struggle in the smaller cities.

Just for your info, I have been in China just under 2 years and have lived in a third tier city, for all of that time, I spoke no Chinese at all when I got here, (I speak a VERY limited amount now) but I am married to a local lady.

  I spent my first two years in a very out of the way city and it was great. Forces you to work on your Chinese more too, if you study it. Going straight to a big city like Shanghai you could easily find yourself falling into circles of fellow travelers and forming a little English corner. Nothing wrong with that if you're just here for the crack but if you want to 'experience China' get in there my son!

  Also, in my experience, the Chinese are generally friendly wherever you go. I've even dined with Chinese mafia and they wouldn't let me put my hand in my pocket (to pay), they were friendly as hell. One girl even offered to be my girlfriend if I could beat her man in a fist-fight. It was really sweet.

GuilinRaf,come out ,this is a question for you!

as  Hugh.G.Rection said it is what you can be comfortable with

I like small cities however I am married to a local girl and I can get by with Chinese to get into deeper trouble.

but that is me but maybe not you 

good luck and best wishes

Hi!

Well, I lived four years in Guilin, which is a rather small city in the south of China and the last year, my fifth, in Beijing.  To be honest, I loved my first two years in Guilin, but by my third year I was bored and by my fourth year I was besides myself with boredom.  It is just way too much like a town, and while i am not knocking towns or country living, it just is not my thing. For me, a weekend in the country would be a nightmare, I do not really enjoy nature except the beach. For everything else I am a city-rat, trough and through.  But that is just me, and in no way is it meant as a slight to those who hold a different point of view.

Now, I have truly enjoyed my year in Beijing.  I am delighted that  go see a Ballet and that the Chinese folk dances are not just limited to one geographic area.  I have tasted Vietnamese Nouveau Cuisine, I have had food from different parts of the world, Western, Asian, Middle Eastern, etc.  I truly feel alive in Beijing, though I gather that most foreigners prefer Shanghai.

Now, this you may find interesting:  In Guilin I knew quite a few Western expats, but in Beijing, I am the only foreign teacher in my university. The only Westerner I knew here was a student from France, and we usually spoke Chinese, since my Chinese is better than my French and his English is not as good as his Chinese.  I actually feel my language has improved considerably faster here in Beijing than it did in my last two years in Guilin. Not only do more people speak a more standard Mandarin, I am surrounded by fewer English speakers and no native English speaker at all.

Anyway, i hope that I was of some help here. If not, let me know and I will be glad to clarify.

Best of luck!