The most popular and cheapest way is using a local SIM card in China. You will get incredible rates when calling in China or calling back to US, Canada or elsewhere by using a Chinese SIM card. The communication charges can be as low as $0.05 per minute, and charges for international call are also cheap.
How to purchase a Chinese SIM card
If you want to purchase the SIM card by yourself, you can purchase a Chinese SIM card at the airport after landing in China. In this case, you can use the card immediately after you get to China. However, the price of the card sold in the airport is more expensive than those sold in the stores of China Mobile, China Unicom and China Telecom. It’s very easy to find the stores of the three telecommunication carriers all over China, so you can purchase the SIM card at those stores. There are many kinds of SIM cards, and not all will allow international calls. So when you purchase the SIM card, please tell the staffs in the stores and make sure your SIM card can make international calls. If you want to top up your cellphone, you can go to the retail stores of the carriers or just purchase a top-up card at convenience stores and street side stalls.

Another way to purchase a Chinese SIM card is through internet, for example, you can purchase it on Amazon or stores which specialize in international SIM cards selling. Travelers can get the SIM card at home and use it immediately on arrival. The disadvantage of this way may be the higher price than the SIM card sold by Chinese carriers.
Alternative Options: Renting or Buying a Cellphone
If your cellphone can’t work in China, then you may be thinking to rent or buy a cellphone. Comparing with the expensive roaming charges, it’s cheaper to purchase a handset in China and then use a local SIM card. There are many cheap cellphones in China and you can purchase an Android smartphone for less than $100, and for those who only need to talk and text, the “dumb” phone is more suitable and cheaper, less than $40.

Renting a cellphone is also a good choice for those who will only stay a short period in China, for example, less than one month. You can rent an unlocked phone back home or just rent from the big cities, like Beijing, Shanghai and Hong Kong. If you rent in China, just ask your guide or the hotel where you can find a store to rent a cellphone, and they will show you the right direction.