I have yet to find or be shown any official links showing where this law can be found. Personally, I'm just going to call the embassy and ask. Everyone else I've posed this question to, the large majourity teaching in China currently, are convicted of the belief that I can obtain a Z visa with a diploma. I'm not crazy about the idea of working on an F visa regardless of whether that are consequences or not, but I've yet to see any real evidence that this is the only route I can take.

Thank you for your help, but I'm still not sure where some of you are getting your information.