I've taught in universities that 'track' students in different levels, modifying the tests for each. I've seen students denied opportunity for scholarships based on strange requirements, but IELTS testing for overseas study has always been available for anyone who can scrape the RMB together.

Remember that the Chinese model of education is one where students are 'molded' by the institution into good citizens. Western education, at least traditionally, saw education as a personal journey of enlightenment. The Western university provides the environment and academic staff that offer an opportunity for the student to learn. The Chinese university is a state institution obligated to train a student. In China, a student's failure reflects on the university. In the West, the university student's failure is his own.

The lowest, third-level, Chinese universities graduate essentially all of their arriving freshmen. Foreign teachers are required to provide two versions of every exam. Students that fail the first are routinely given the second exam, monitored and graded by a Chinese teacher of the university's choice. In this way the foreign teacher's failure of students is meaningless, but he is given 'face' by the Dean who avoids specifically dictating that everyone must pass.

I find it particularly amusing that despite this system, Chinese teachers still place amazing energy and focus on teaching the test, all the while turning their back on rampant cheating and ensuring that everyone passes. Testing is truly a quasi-religious activity in China. High test results validate their success at having 'molded' the mind of the student.

Entry into the university through the Gaokao is still, however, relatively transparent and competitive.