One problem is that China as a nation, got a little too confident, too quickly. It was indeed perfectly acceptable for the country to develop a little more self-respect and tighten up some regulations; with the intention of keeping the less desirable foreigners away.

However, the full-bore nationalist tilt on things that will become even more prevalent, as the economy goes tits up (or the golden era merely comes to an end) has had the negative effect of driving the higher quality foreign workers away and not just in teaching either. Blaming foreigners for everything is always a very convenient way to deflect attention away from domestic problems.

What really tends to keep me in China is probably the fact that not all Chinese people are as stupid as the commonly occurring type that you have referred to. Especially those who have studied abroad or have worked in foreign joint venture companies. However. as long of SOE dinosaurs still exist (A.K.A the main beneficiaries of the recent stock market f**k ups) and government interference in private companies is still common, China is still going to be at a disadvantages compared to many of its regional competitors.