Its not your business as your not apart of their society and you won't become a member of it either. Spy on students is wrong from a Western point of view, as a true Libertarian I would be outraged if it happend anywhere in the Good Ole US of A. As a foreigner working in China and being able too actually look at things from a different point of view I realize it isn't any of my business. They chose this lifestyle and its acceptable to them, its disrespectful for me to or any other foreigner to tell them how to run their society. You aren't a savior to the Chinese people, and you won't be viewed as such if you tell them how to run their country. Your a guest professional employee, act like one and don't give us a bad name.

Now if they spy on you or any other foreign worker then its your business.

Plus we're talking about college students who share a dorm the size of my bathroom back home in the USA with eight other roommates. Privacy means something totally different in Chinese culture and you as a foreigner don't understand it just how they don't understand our thoughts. Some people can live in China for 10 years and still be totally oblivious to something so simple as that.