Correct me if i'm wrong but i thought the 5 years experience criteria didn't apply to language teachers which limits it's implications for the esl industry. As far as i'm aware language teachers will only need 2 years experience to work in Beijing. These kind of 'rules' have been around for a while but they seem subject to location, time and the needs of institutions.
I personally don't think this will be extended to the rest of china or to the esl industry in general because it would kill it off overnight and there are far too many vested interests in the money making side of it for that to happen. Besides which i don't feel that it would make that much difference to the quality of teaching in the country as a whole.