I've run into this problem multiple times in GZ. The landlord says, "I will pay in the first three months, after that it's your responsibility." Fridge and washing machine broke down weekly, cheap to repair but took days at a time. Aircon broke down, the repair guy said that the units were more than 10 years old and not worth fixing. Living room wall rotted to the point that you could put your hand through it - because of the un-insulated hot water pipe that ran behind it. Almost had an electrical fire because of the cheap DIY electrical work.

Remember that there's no "normal wear-and-tear" clause in the contracts here. Everything is jury-rigged as opposed to "installed by master craftsmen."

This is why now I insist on paying landlords only one month's deposit and pay the rent one month at a time...if they won't agree, I won't take the place (no matter how much whining and squealing agents do about "this is how it is in China.")

Tell your wife and landlord that for every jiao you have to spend on repairs, you will match that amount on cement to pour down the drains when you leave.

I've been lucky. I get on well with my landlord, and repairs have been (mostly) paid for by them. It's their place, and they respect that they are responsible for keeping it in working order - such as plumbing, electricity, fridge, air-con, etc.

So, yeah, if I was in your situation, I'd do the same! Keep all the fapiaos fro the repairs, with the invoice (bwahahahaha), and tell the landlord that somehow, you'll get that money - either in cash, in the repaired goods... or in revenge !

I think people forget when they are searching for apartments they should also be vetting the landlord.  Generally i would only stay in a place where the guy was rich as hell, and pretended not to care about money to save face.  It makes things a million times easier.  Oh pay the rent whenever, thats broken? who cares! buy a new one and take it off the rent.

 I have lived in China  for years now and was lucky to find this type for my first apartment,  heard other stories, connected the dots, and actively searched for  these type of home owners.   

Easier to find than you think, most people that rent out a house own several.

In your particular situation, I would have never given them a choice.  You need to make it clear when you move in what is whos problem, and if something happens, keep a reciept and minus it from the next months rent.  

As its been so many years they might resist if you start now, but why not try? Money is money, so is your time.

My 1st landlord was horrible. A fake new rich Chinese woman, a very arrogant person. She made me pay for things that got broken and whose responsibility was not mine.

Also, she wanted to keep my deposit because she said I had damaged the water heater. She went on the toilet and opened the water tap. The water was hot but that small red light of the heater was off, she said it was damaged and I would have to pay for a new one and she would keep my deposit!

I explained her that the small red light only turns on whenever is heating the water. Since the water was already hot, the light couldn't turn on.

That dumb ass woman kept insisting that it was damaged. 

I then had to give her a demo. I picked up one of those electrical things you use to heat up the water for tea or coffee, I pressed the button and the red light turned on. When the water was hot it turned off. Then I told her, you see? End of story, I didn't pay for the repair (there was none to be made).

My 2nd landlord is a very nice person. I got a new washing machine last Sunday because the one there died. It was old, really old and I had nothing to do with being broken. So, that's my rule. If it's not my fault then I don't pay for it, period. Not even 1 yuan. Don't let them take advantage of you only because you are a foreigner. Good luck and no matter what, don't ever let a Chinese person take advantage on you! Assume the blames only if you are the one to be blamed.

My AC didn't work when I moved in, owner promised to fix. I enjoyed bugging him. When I left he noticed that the AC was on. I told him I fixed it myself, but not that I had just put new batteries in the remote and it always did work.