The following information, taken from the archives here, was found by the poster by following links in EFL-law.com.

"The regulations state very clearly that all Foreign Experts, including teachers of English, must have a minimum education standard of 1st Degree; however, where an applicant can clearly demonstrate an equivalent "academic" standard through experience, sometimes the Foreign Affairs Office may approve such persons. All applications are individually assessed."

Clearly then, one can teach without a degree. Be careful though. If you are not dealing with a Foreign Affairs Office and are only accepting misinformation from recruiters and/or private schools, you may be walking into a sketchy situation. Be aware that private school owners and recruiters often have the local police and other authorities on their "payroll." When in doubt contact the nearest American embassy or consulate. There are people there that can give you the latest information on regulations and who can direct you to the correct people to talk to.

Finally, don't be hoodwinked into believing that just because you have signed a contract before leaving home that it means anything or that it's going to protect you. And remember that what you are promised and the picture that has been painted for you is rarely aligned with reality.

Oh, one last note for the woman who wants to bring her four children here. You want to teach in China without a degee. All well and good - maybe you can pull it off. But my advice is for you to come here first without the rest of your family. Check it out very carefully before submitting children to what could possibly be a very stressful situation. If it all checks out, great! It could end up being a fascinating and rewarding experience for all of you.