The only way of doing this is probably going home early and making up some excuses as to why you can't do it. Don't get into peer pressure it's not a good thing especially if it's Drinking Baiju or too much of it which I call Binge Drinking!!

Just say that you don't drink baijiu, you don't like it. If you still be friendly and drink some beer instead they shouldn't be a offended.

If you don't need to be polite to the person or people pushing you to drink, a firm 'Fuck no' and a cold stare usually does the trick.

If you do need to hold the profanity, simply state that it gives you a headache or that you're allergic to it and it gives you hives or something. Make people start to feel guilty for trying to make you do something you obviously don't want to do.

Do you mean "How to avoid drinking baijiu at parties" or "How not to drink Baijiu" as in a method that would prove ailing to yourself and your friends? Regarding the second interpretation, I would say lifting your glass, opening your mouth, tilting said glass until baijiu trickles down your throat and swallowing would be a way not to drink baijiu; I.e. not at all!

It seems to work pretty well to say "I don't drink", however this is often followed by a question if it is because you are trying to conceive "your child". possible answers to this are

1. Yes

2. No

3. I just don't drink

4.long discussion whether "your child" is a correct way of asking if people are tying to have children or if this is due to the OCP and a decent amount of brainwashing

You can also start a longer conversation about the safety of the cheap crap their are trying to serve you

Don't go to the party in the first place.

The best method I've found is to bring a bottle of liquor from Foreignland (or your own country) and have people drink that instead. I found bottles of Grant's scotch for 88 yuan, cheap and much better than the local stuff.

1- Scream "Get that SH*T otta my face, a$$wipe!!!!!!!

OR

2- Show them you are drinking something else (beer, tea, etc) and toast to their health.

I would hope you do the first one, solely for the entertainment value, but would recommend you do the second one, and thus make and keep friends.

I just say I don't drink alcohol. Nobody bothers me beyond that, and they offer Coke/Sprite/Water instead. Then, as Raf says, I toast to them. They enjoy it.

From my experience the pressure is much worse in the smaller towns. I've seen much more respect for choice from the Chinese in the bigger cities. Still, when it's on this is the Chinese at their worst. For two months straight I had to endure banquet after banquet with education officials across the country. This was two months of the same speel over and over and over again...

"Just a little bit"

"We understand but this one is very good quality"

"In our culture..."

"Just a little bit"

"If you don't drink you are not accepting our friendship" 

"Just a little bit"

The thing is, the more they pushed the stronger my resolve was. I am sure there were many unhappy officials at the time but I just kept realising that at the end of the day it all passes and nobody really cares. 

I will always remember one complete tosser that was hassling me and once he saw I was not going to budge started trying to get me to skull sprite instead. My driver was a  hell of a drinker and thought it was insulting that he was trying to make me skull sprite. He took it upon himself to ganbei him again and again until he was "out of action". I loved it and  was so grateful that my driver stepped in and staunchly defended my choice in this way. Hopefully he learnt his lesson.

These days I either say I am a Buddhist or that I have a fatty liver (if I really want to stretch it I say a fatty liver caused by excessive alcohol). 

its a myth among foreigners that chinese will get offended if you dont drink baijiu..