Even if you could get by with the road signs and handle the legal issues when you have a fender bender (cause as a laowai, it will be your fault no matter what).  Their "way of driving" is something most people don't even feel safe crossing the street the first time, much less trying to drive. 

If you are having to ask questions like this, just stick to taxis.

I agree with DaBen. Even if you could drive, get a licence and sort out any legal issues, it is much more convenient to just catch a train. Outside of peak times the subway is OK and you can then just get a taxi if you are further away from a station. The traffic and driving habits of the locals ares that bad that it would do my head in trying to drive in any big city. the other thing about China is that in almost every area you live in a city there are so many markets, restaurants and shopping areas within walking distance so if you can find a place to live that is close to where you work or close to a station that allows an easy commute to work then you wont need the added expense and hassle of having a car anyway.
 I would like to have a licence to drive in China but only for travel in the countryside. Never in a City commute.  

I agree with DaBen. Even if you could drive, get a licence and sort out any legal issues, it is much more convenient to just catch a train. Outside of peak times the subway is OK and you can then just get a taxi if you are further away from a station. The traffic and driving habits of the locals ares that bad that it would do my head in trying to drive in any big city. the other thing about China is that in almost every area you live in a city there are so many markets, restaurants and shopping areas within walking distance so if you can find a place to live that is close to where you work or close to a station that allows an easy commute to work then you wont need the added expense and hassle of having a car anyway.
 I would like to have a licence to drive in China but only for travel in the countryside. Never in a City commute.  

imagine all the bad drivers you have incounted in you years of driving.
Now imagine them running for their lives crossing the road in China.
and thats just on the foot path

i vwll share a few tips, when you arrive here you will see that me, all all above, told you the truth !.  Then, do as you please, it will be your risk.

1.- China does not recognize any foreign driver licenses, not even International ones.  So, unless you have a Chinese driver license, you will be driving illegally, or can not rent a car under your own license.  You can, do, hire a Chinese driver to drive the car you could rent under his driver license, or hire a local with a car, much safer for you.

2.- In China, driving a car is a constant risk.  I do, and it is very stressful.  Here, the bigger the thing you drive, the more right of way you have.  There is no respect for traffic laws, traffic lights, etc.  It is common to make a right turn without even slowing down from a far left lane, cutting accross two or three lanes of traffic without a second thought, or a turn signal indication.  Just blowing the horn.  Or driving on the wrong side of the street, or whatever.  Just remember, renting a Sherman tank will give you a little better "right of way" than renting just a car.

3.- Then, even most directional signs are both in Mandarin and pinyin (thanks China), many other signs are symbols, do you know their meaning ?

4.- And last, jsut the mere fact that you are a foreigner, and will be considered by all a millionare, if some wise fellow jumps from the sidewalk in front of you, and you barely hit him / her, you will support that person for life and it will not be cheap.

My advise to you.  Forget renting a car.  After you arrive, try thru the hotel to negotiate with a local taxi driver or a private individual to drive you around and show you the main attractions.  If you are good at negotiations and bargaining, you will save a ton of money from a rental, plus na lot of other headaches too.

It's probably better to use the bus or train or have a personal driver. You would have to get use to the driving here...and it's almost like a roller coaster ride without tracks...you have to wait a long time because there are traffic jams and people don't drive in a straight line in china. They zig zag and zip in front of other cars.... So it would be safer to ride the subway and the bus.