I wanted to clarify a point. The police bureau told me that as long as you register with the local police bureau, then you are allowed to stay anywhere in China (minus restricted areas). They don't care where you stay, the government doesn't care if you sleep in a ditch. They just want you to register at the police bureau. 3-star and above hotels do this automatically for you. But the "dumpy hotels" don't. As long as you go down to register at the bureau, fill out their form, then they will have no problem with you staying at any location. Of course, everything can be overrided with guanxi. And every province has its own regulations. So, again, TIC.
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