That's especially acute considering China is more and more opening to foreign labour - despite the fact there is no path to Chinese citizenship for foreigners, well, except Nobel prize and Olympic gold winners.
I know a number of people who were non-Chinese "foreigners", but who attained Chinese citizenship. As long as you legally remain in the country for sufficient time it's not impossible.
It would have a completely different effect in China though and serve to raise the average salary rather than reduce it. The fact of the matter is that foreigners are generally paid more in China (speaking from my own experience and that of friends and acquaintances who have also worked in China).
