Dunno about other places, but China certainly can't afford to ignore what has been one of the chief pillars of American power for the last 50 years. Its ability to attract entrepreneurs and visionaries from every corner of the world. Whether it be the Indian CEOs at Microsoft and Google, or for that matter one of the founders of Google, Elon Musk, even our own people like Jerry Yang and Steven Chen.

You're right in that creating large pockets of foreigners creates among them an identity crisis as they clash with the locals that's simply better avoided, as Nations will always have internal problems and stacking upon them does it no favors. So I think a greencard program of sorts would work. Allow only foreign entrepreneurs and engineers who qualify to come and ply their crafts. If they choose to bring their families, enroll their children in international schools. Make it clear that no matter what, that although their efforts are appreciated they are still guests and should respect their host country as such. And by only allowing these select few gifted individuals who can contribute to advancing technology, medicine, science, etc. you can keep the population small enough so that the locals don't feel they are experiencing an invasion of people coming to take their jobs and change their identity.

I think the key to this where the West failed is keeping the population restricted to solely educated people so that the population stays small and making sure they feel welcome, but also making sure that they and the natives are aware that they are foreigners. The worse thing that could happen to immigrant populations is that they start feeling they are entitled as citizens of that country and demand concessions. If you send these foreign entrepreneur's children to local schools and they complain about bullying, that could definitely reinforce those sentiments. Their kids won't get the shit kicked out of them, we Asians are far too civilized for that, but for example the world already raises hell about Africans in Guangzhou, eventhough all they get is slurs and not once has a Chinese person committed an act of violence against them. Make these people aware that they are guests in the country and their obligations are solely to their craft. Their children should have residency in China as long as their parents do, but also be citizens of their native countries and in addition to learning Mandarin, making sure they know how to speak their native tongue. And boom everybody's happy. The educated individuals get to ply their trade and the locals won't be radicalized by fears of foreigners taking their jobs and their country.