Because of this aspect of Chinese culture (with some of the token gifts I've gotten over the years, I'm tempted to adopt this practice too), I've always made an effort to choose something, not necessarily expensive, but considered high quality. While I would likely never know if my gift will be regifted, at least with a high quality item, I may feel better knowing that eventually, the item will eventually find itself to one who will actually appreciate and enjoy it.

As to GK's recommendation for cash, between friends and non-business acquaintances, I think it's considered good manners in Chinese culture. For one whom I have no idea what to give, there's nothing inappropriate, in my view, to offer an envelope of cash while saying something like, "for tea, just a little something for taking the time showing me around, picking me up from the Airport, etc..." I would do this only at the conclusion of my stay or visit.