Whether there is competition or not would not be the biggest factor for improved working conditions for teachers in the long run. Competition has always existed and better rules/laws are written while also carried out into existence despite the competition bringing in the seemingly enticing option of cheaper labor. With the current situation in China, we see that this may have reached a bit of a crossroads in at least some areas. For example, if I am a greedy Chinese boss looking to cut costs, surely I will have by now run across situations where the people I hire leave me due to being unhappy with their working conditions. Migrant workers do this all the time in China. Now if the same boss ventures into the ESL world he/she will be playing with odds that are just as fragile if not more so. What should be realized here is that if the first or 2nd batch of expat teachers leave on mostly unpleasant terms, that will not deter the bosses from immediately changing their ways. If 3 out of the first 5 teachers I (I will role play a greedy Chinese boss) hire leave before their contract is up, the 4th finishes the contract but will spread negativity, and only 1 finishes and leaves on good terms it will only leave me more in want for that "magical" batch of foreign teachers that all stay and give me the chance to make and even "make back" the money I should've made in the beginning even more. If these odds happen again to me a 3rd straight time I would probably have to re-think my ways of treating the teachers. But if the 2nd batch of foreign teachers yields 2 obedient types, 2 independent types who leave early, and 1 neutral or negative type who finishes the contract I will start getting my hopes up that I can get away with exploiting foreigners after all. If for some unfortunate reason I as the Chinese Boss were to ever get 2 out of 5 who willingly extend their contracts and completely bends over to my whims (even 1 would do for smaller training centers) I will merely keep on turning the employment turnover wheel of foreign teachers until I "weed out" the obedient ones to stay with my company. Meanwhile to ensure my shady business doesn't get shut down from inside or outside forces I bribe the local government officials, I have the agencies in my back pocket, I pay my employees to be snitches towards everyone but me. What can only stop me from thinking I can get away with the continued abuse of everyone including the foreign teachers is if my company's reputation becomes so soiled that I need to spend huge chunks of money stopping the ill will, flack, and general perception of my anti-value to the whole economic system. I might actually change my demeanor towards expats for a short while, but as the old saying goes A Leopard doesn't change His Spots so I am always on this merry go around of pretending to be nice and being myself. This is a cycle that is repeated over and over again.

What ends up happening is that so many of these "businesses" exist that they put a drain on the whole integrity of the country's image, leading to a loss of confidence by the more bright minded folks both foreign and domestic who would like to contribute less than they otherwise would. Fortunately, the corruption and strife may have already caught up to many companies and schools as many of them have difficulty getting real teachers.