Dave, when you mention performance I believe you're on the right path to identifying what Chinese school leaders demand. however it's been my experience that schools base their idea of performance on how much profit they can acquire from each teachers performance inside (and often outside of the classroom).

You say that the Chinese don't give a hoot about colour. If they don't give a hoot about colour, why do many Chinese schools often discriminate against non-white NATIVE-speakers of English, and why do many job adverts in China specify that they only want white teachers? Many Chinese schools clearly do give a hoot about colour, AND indeed race, because is it not common knowledge that some schools actually specifically ask for only African or Fillipino teachers? Why is that the case?

So what is this telling us about schools in China that often discriminate on numerous grounds? Well, similar to performance, whatever the colour, race, or nationality of a teacher, they are often chosen on the basis of how much PROFIT can be made from the individual. Here I believe is the REAL reason for discrimination amongst foreign teachers in China. Yes, PROFIT... Why are we arguing in circles, splitting hairs and beating around the bush, and putting forward arguments such as the teaching of culture, the ability to teach colloquialisms, and ethnocentrism etc. when we know that most Chinese schools couldn't give a damn about any of that stuff. They simply couldn't care less as long as each teacher keeps the students happy enough to keep them coming back for more.

Yes, it's all about the green stuff (well it used to be green in England), lolly!, cash!, brass!, dosh!, dollars!, whatever we call it, most of the schools that discriminate are only concerned with the stuff that makes the world go around, the stuff that some people will sometimes do ANYTHING for (even kill). Yes, I can hear some of you already saying, "But, they're businesses and they have to make a profit". Well, sure, if they really DO care about their product, and endeavour to provide quality education in return. But how many of such schools that discriminate, do so because they are really concerned about providing the BEST EDUCATION for their students?

In such schools if the students are happy with the teacher it often doesn't matter why they are happy with him. Some students demand real teachers, and if so the school will too, but only according to STUDENT demand. If the students are satisfied with a dancing monkey then the school will not care about employing real teachers as long as a healthy profit is being made. Whether we are native or non-native speakers, white, black, brown, red or yellow, we are all pawns in a game of chess being manipulated into position by the hands of many Chinese schools. Hell, if little green men from the MOON appeared on the earth with at least the ability to string two English words together and were able to charm the socks of Chinese students, while being happy to work for 3000 RMB a month, then we'd ALL be packing our bags back to where we came from. I can see the job adverts now. "Greens only, with a lunar passport!" (Do you think I'm joking?). Think about it for a minute. Who would be shouting about discrimination then?

Because many schools are so profit driven in China, there is actually a slightly increasing market for non-native speakers. Where not enough native-speakers can be found, often due to demands for higher salaries, schools are often willing to give opportunities to non-natives. In cases where students are satisfied with them, these teachers will be asked to sign on for another year or more. If you're keeping the students happy then Chinese school leaders suddenly become colour blind. If you're helping the school to rake in the dough, you're the man (or woman) no matter where you come from (yes, including the moon). While on the other hand you could be a native speaker from the UK or USA with blonde hair and blue eyes, but if you aren't keeping the students reasonably happy, or if you upset the apple cart in anyway, you'll be kicked out of there in a shot. When you're LOSING money for the school, again the leaders will suddenly be colour blind. I've personally witnessed these things in schools I've worked for here in China. The only colour such Chinese school leaders like consistently, is the COLOUR OF MONEY!

Schools that discriminate in China do so on the basis of what they percieve to be the demands of the students. Santiago made a good point about that "perception", often being flawed. I agree. IF they feel that students want culture they will give them culture. IF they feel that students want real teachers, then they will give them real teachers. IF they feel that a student wants a native, non-native, white, black, African...then they will give them a...
Their selections are based on HOW MUCH PROFIT THEY BELIEVE THAT THEY CAN MAKE!