Yes, it’s strongly recommended, especially if you want to stay in foreigner-registered hotels. Use platforms like Booking.com, Agoda, Expedia, or Hotels.com, and filter for “English-speaking” or “foreigner-friendly.”
Linkedtours can also help you book hotels you want, particularly the ones not covered by the hotel-booking websites. Linkedtours can give you more recommendations depending on your tour plans or destinations.
It is recommended to book five or four-star rated hotels if you want a more confortable stay. If you want the accommodations to be more economic, there are also quite a lot of Youth Hostels available in most of the cities in China.
Example:
A New Zealander can book a room at the Crowne Plaza in Xi’an via Agoda — these types of hotels usually accept international guests and take foreign credit cards.