Swiped the card in front of me.
I said, "if it asks to choose between RMB and Australian dollars, I want to choose RMB."
She said, "Yes, RMB."
I was presented with a preauthorisation slip (so it was a preauthorisation COMPLETE, and not a separate slip that would usually say DCC), that said Mark [X] transaction currency: RMB or AUD. I ticked RMB. I received a copy of the credit card slip (it only said COMPLETE).
Two days later when the charge is finalised by my bank it says "Foreign transaction fee (SC)."
I believe that the credit card terminals are likely configured by the Bank of China to use DCC by default, without giving the prompt for the guest or hotel to select the desired currency.
I am currently in contact with the hotel and they are blaming the extra charge on my bank, instead of on the DCC issue. I think they just do not understand what the DCC is.