Nexus 7 £150 Skype away
Front Facing Built in Camera.
Hotmail / MSN Messenger is being merged over to Skype.
So if you would prefer to chat then its just like messenger.
You can also buy a web cam for your computer with a built in microphone. Allowing you to chat.
Its not perfect but for video over distance is amazing when compared with just chatting.
* Find out what your china friend has access too or you may be throwing money out the window.
If you want to try it out drop me a pm as i can show you skype working
* Google + Uses Hangouts (Same thing as skype).