Roughly the steps needed are.

1: translation of your existing drivers license (official translation)

2. health check

3. apply to take test (there is a form that needs to be filled out) 

4. go take test

I've heard estimates than less than half the cars on the road are driven by people who actually have passed the license. 

The cost for taking a license the legal way is probably different from city to city. Here is it about 5000, there is a waiting list, you need to spend time reading etc. People chose to just give the 5000 to the appropriate person and get a license in return. 

I did, passed from the first time. If you have your country's license, the whole thing will cost you less than 500. (at least it was that much here in Xiamen). For the actual training I have no idea...it took me one month to get my license in Bulgaria this summer, and it was twice cheaper than here. I think that's the better option. But if you live in a smaller city, it should be around 3000. Xiamen - 7000 and up!

Depends where you are , if in a small city in the NTH they do not know until they call around

In the city I am in (Shijiazhuang) we have been trying to find a school that will take me.

We have contacted dozens but they don't want a foreigner.

Even though, according to the government auto bureau in the city, it is exactly the same process for me as it is for Chinese.

Thanks guys.

Luckily I know how to drive and have a drivers license so some of the hassle is taken away. Now I just have to decide whether I want to be driving on these roads knowing that half the people around dont have a legit license. Hmmm.

I took the test 3 years ago, and apart from a medical ( just showed my medical document from the hospital that i got when i did my visa ) the list is correct. You need to get your own countries license translated ( must be a full license, unless your planning to do the whole lot here ).

Get yourself registered with a driving agency so that they can then present your docs to the police and test center. The translation was done by an "authorized" place listed by the police, so no shortcuts i am afraid. The test center "should" provide you with the test questioning which will be in Chinese, and if it was like my place, they gave me a CD with all the translations, 1500 questions from which i think 1000 need to be memorized as the others are for HGV and Busses etc.  Once all is in order and you are ready you can take the test, remember that you can take it twice each time, you need a score of 90% based on 100 questions. If you fail, then you need to wait at least 10 days ( yep, i failed ) and pay i think about 35 rmb.

All in all with translation and stuff about 750 rmb spent, i certainly didnt go down the "illegal" route, but fully understand why people might do that.

By the way, i have a UK full car + Motorcycle license, when i received my Chinese one, i had C1E class which is car + motorcycle....i didnt ask for it, but hey ho, two for one eh...

i took the test 2 years back. it was really a piece of cake and i paid 180 RMB  in total translation included+ fees( i did my driving license translation on my own and asked translation agency to put a stamp on it) .i did it on my own no agencies or anything. i just went to traffic  police head quarters and asked all the details they were very helping. i cleared my exam in first try. i was really amazed i got my driving license within a hour after clearing my exam.  

1. driving license from your country ( translated and stamped by a registered translation company) including point 4.

2. temporary  residence registration.

3.passport copy with translation.

4.A Chinese name. The name will be used on your driving license.

5.Slightly smaller then passport size photos.

You should hold a visa valid at least for 180 days.

They will do the rest. They will ask you to go to someone nearby office and do medical.

Remember to check with your local Traffic department.

Best of luck.

The questions are new this year...900 questions.