There is a widespread problem with counterfeit Chinese 50
and 100 Yuan (RMB) notes in circulation in the PRC.
Everyone carefully examines each note when it's offered for
payment. I was passed a counterfeit 50 (it even had a
watermark) as change at the Yangshou river park.
Change money only at banks and hotels. Try to have enough
smaller Yuan notes (10s and 5s) to avoid receiving change
in larger notes. Reject any bill that's torn, taped or
unusually faded. Tourists are prime targets for passing on
these bogus bills.
Also beware of english speaking "students" or "teachers"
who strike up a conversation on the street and then ask if
you would like to see their "professor's" art work. This
scam was especially annoying in Giulin. These shills are
not students or teachers and pick you out as you leave your
hotel or other public places before effecting a seemingly
chance encounter.
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The "students and teachers" are also in Xian.
What exactly are these "students" and "teachers" after?
They're in Beijing too, at least sometimes, around Qianmen
The "students" take you to an exhibition that they say is
their and their teachers' art work. The idea is that you
go, look at paintings, and buy something that's not great
quality and is severely overpriced. One of the "teachers"
painted something as a "demonstration" then tried to sell me
that too. It's like anything else, just keep saying you
don't want it-- they're polite enough when you leave.