Can't really answer this question without a better idea of where you're going in China.

If you'll be in cities like Beijing or Shanghai, then there is not much to worry about; there are international hospitals and clinics available, with modern equipment and western doctors. Just be sure you have adequate health insurance.

If you'll be in smaller cities, it may be a very different situation. Most expats I know in smaller cities will use local hospitals for minor problems (and those hospitals generally do an adequate job, for a very low cost); but for more serious problems, will go to Beijing or Shanghai, or even head back home (although I don't think this would be necessary for all but the most serious of situations).

The biggest medical concern for expats should be serious emergency medical care when not in a major city; if you will be living outside of Beijing/Shanghai, and/or plan to do a fair bit of travelling within China, then getting insurance which explicitly covers such things as air lifts and emergency evacuations would be highly adviseable.

I've been in China 10 years, and never had any problem with the medical services; I've even had a tumor removed at a Chinese hospital, and was very happy with the quality of their work (and at a tiny fraction of the cost in an international hospital).

But a serious medical emergency is always possible; such situations are ALWAYS frightening, and are justifiable cause for concern. In China, where you may face doctors who can't speak your language, and hospitals with facilities far below the standards you may be used to (particularly in smaller cities), it is certainly adviseable to be sure you have all bases covered. In my opinion, you can't be careful enough in regards to insurance. The peace of mind is well worth the cost.

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