I feel like a lot of that falls on you doing your due diligence. There are still plenty of langauge mills around which seem to be what you want to avoid.

Apply to international schools with a decent reputation who are advertising for certified teachers, contact and talk to some of the teachers there to find out how it is on the ground and avoid places with names like Happy Giraffe or Talenty English.

I always  knew, the word 'teacher' can be anagrammed to a 'cheater ...' 

also avoid their direct competitor 'Less than Happy Giraffe'

Yes and they will never go away because education in China is more about extracting resources from the clients than teaching them anything, employers want the cheapest teachers and to charge maximum fees to the parents, they don't care about quality of education or standards, the sooner you understand this, the sooner it stops bothering you.

The quality of Education all over the world has dropped rapidly in the last 20 years.
The reward for turning up is a passing grade in so many courses.
The foundation of an education has been eroded to a everyone is on a level playing field...at the bottom of the mountain and anybody that seeks to climb the mountain is dragged back so as not to make the rest feel inadequate.
On many occasions I've marked assessments attended but did not participate only to have them pass because someone else changes the papers and pass them.and this is in Australia
Edit: this is the polite version of my thoughts as what i really want to say isn't classed as PG and would offend sensitive souls

What do you mean by fake?
If you mean that a fake teacher doesn't possess a degree in teaching, yes almost all are fake.
If you mean they are a species that can pass for human, yes there are some.
If you mean they have no qualifications whatsoever, yes there are lots. But are often the best classroom facilitators in this odd environment.

From experience I have noted that most of the teachers that were doing a pretty good job were the ones without a degree. A lot of my Ghanain friends were doing a splendid job and would teach circles around you.They are getting rid of two thirds of the foreign community at the moment so please do come over as there are simply not enough foreign teachers even with all the "fake teachers" running around.

Not all teaching jobs are equal. if you apply for any type of training school their goal is to make money. Its mostly hit or miss in China but if you do your due diligence you can find a good job.  Not all schools in China are shit or fake. And who cares if there are tons of fake teachers in China and shit schools...don't work at those places. It's pretty simple to figure out.

And what is China to do?? I mean there are probably not enough "real" teachers in the whole world to fill chinas demand. They also don't want millions of 3rd world riffraff who can string an English sentence together to come to China and pretend to teach. The salary is good compared to where these people come from. It's a tough situation, so much demand and not enough qualified people to do it.

The work visa requirements for a teacher make the chances of getting a qualified teacher from North America, Australia, or western Europe pretty slim as all those countries have better standards of living. China's economy has become better so most of the applicants are now from those countries whose standard of living would be much better than in their home country: Ghana, Nigeria, Ethiopia, Ukraine, Russia, India are just a few examples. There are so many "shady" schools in China that it is easy to get a visa. The problem with that is when you go to SAFEA to resolve an issue, you will run into a dead end.