I agree that there are many FTs in China who can and do live on a pitance. I've even seen some groups of teachers get quite competitive over how little they can spend a month and i personally enjoy being able to actual build a bank balance rather than just making ends meet as i was when i left the West.

But I still feel that if you give a Western family of 4 1000RMB for housing allowance then they are probably not going to be happy with the apartment that they can get. It's unlikely to have modern fixture and fittings (probably no western toilet), adequate climate control (good air con, decent windows, etc.), probably won't have hot water available in the kitchen and in general it won't be clean to the degree that most Westerners consider something/somewhere to be clean. To get an apartment to standard then you'll need to dip into your wage.

It just sounds like the Principal David spoke to in Zhengzhou hasn't given due consideration to what a professional from the West moving to China with their family would want to hear. As someone in a similar boat (i only have 1 child) the most important things i want an employer to provide are accomodation suitable for my situation and education expenses for my child. Equally i wouldn't want the Principal to haggle over every last penny and then say that i have to make a decision now - it's a pretty big call when you decide to move your entire family to a foreign location.