Anyways, we agree on the basic principle of having funds available to deal with unexpected crises that may arise!

That we do, sir.

Yes, it is very important that you always have some money of your own on you in case something unexpected happens. You simply cannot rely on your Chinese employer to help you out in such exceptional circumstances - whether it may a political crisis with impacts on the security of foreigners, a serious illness that you better have treated by a Western physician, or when you have to do a runner from your employer for a very serious reason and would have to leave China immediately. When in China, I have always had a "security relief fund" of around 1500 Euros minimum with me which I would only make use of in such an emergency situation. To keep it in the form of American Express Traveller Cheques which can be cashed anywhere in China is quite a safe way; you might even get a refund when the cheques are stolen.