but FAO's in China NEED teachers, and since this
IS China, many of them will do whatever is necessary in order to get FT's into their
classrooms

This is absolutely not correct. FAOs are responsible for a variety of functions: international students, partnerships with overseas institutions, student foreign study opportunities, kissing the University president's ass, etc. Recruiting and managing the FTs is just one task that they are given by Deans and University Education committees. For many obvious reasons, they do not relish the responsibility of dealing with FTs. Many universities in China now have severely diminished the number of FTs that they recruit. I suspect that many are 'sitting out' recruiting new FTs this academic year to see how the new regulations are being implemented.

Private schools and their attack-dog recruiters, however, will behave as you have indicated, since they need dancing white faces to market their services.