They sound very realistic people to me, they realise that FT's, or not many of us, degrees or no degrees, cannot teach English grammar, and this is why we are called Oral English Teachers. The only qualification you should need to teach English in China, is that you are a native-born English speaker. Just open your mouth and turn up and chat to the students is more than adequate.

Exactly, my friend. That's why I never studied TEFL before coming to China. You don't need formal qualifications in teaching English to teach English in China.

And if the school FAO gives you some problems, treat him and his immediate family to a free restaurant meal each month. The problems will stop, and you'll get a great teaching reference after the school refuses to renew your contract! Then you can move on and repeat this cunning ploy elsewhere in China!