I've had smaller hotels tell me they can't host foreigners due to some law that you need to have a star rating which they didn't. The only time I had problems booking a hotel was in Shanghai and Beijing though, in other cities there was never an issue.
Also I was always greeted with utter friendliness, so I don't get the everybody's xenophobic aspect. I do speak some (very basic) Mandarin though so maybe that helps with how you're treated.
Not speaking Chinese is probably a benefit, because what you don't know can't hurt you. I speak fairly fluent Mandarin, and have overheard a lot of very open racist and xenophobic sentiments expressed in conversations around me when the people presumably assumed i couldn't understand what they were saying.
It is true that people in China tend to be fairly polite, although when it blows up it tends to go straight to 11. (I saw a lot of this happening between police and residents during the coronavirus lockdowns.) But just because people are polite, don't assume that means they're not bigots. In some parts of the country, particularly amongst more affluent people, there is a sort of attitude that foreigners should be treated with kid gloves, which is thoroughly degrading.
As a Chinese who grew up in a very small city in the west, I think you are completely right. The more developed areas is, the more open they are. And so on to the teenagers compare elders. At least in the surface.
However, as the government turns to be more close(I don’t know how to describe it more correct but i believe you know) when Xi gets the power, even the teenagers become more racist and xenophobic while I am an undergraduate seen.
IMO, probably that’s because most of them could only receive the Internet in China(which we always consider it as a LAN): everything in the world has a “Chinese special edition”.
After all, IMO, it’s able to come to China in some big cities with a VPN or something across the firewall since nobody can stay away to internet these days. Thus you will get a experience not too bad, and China is like most any other countries. But just stay in the urban area. What’s more, you know it’s not a good time to visit during pandemic, and i think racist and xenophobic been much more during these time. I don’t know what the china being tomorrow, but i’m pessimistic.
Sorry for my bad english.
Also I was always greeted with utter friendliness, so I don't get the everybody's xenophobic aspect. I do speak some (very basic) Mandarin though so maybe that helps with how you're treated.