Jeez, are you really Amused in disguise?
Here it means he got caught. Suggesting to people that they simply get a new passport with a new passport number in order to circumvent the rules, just isn't worth the risk.
That's all I'm saying.

I would recommend you apply for a replacement passport and
start again as if you have never before worked in China

An American ex-colleague of mine tried that. He was 'sprung'.

If you just apply from back home again, you'll be ok, there will probably be no need for a reference letter.

Also, if you are getting recruited for any public university, they will probably demand it if you explain the situation. Private schools don't tend to f**k with those people.

Under the guidelines of the SAFEA office once you've completed your contract the school is required to give you a release letter, letter of recommendation, and a copy of the cancellation of the Foreign Expert Certification. How you start is a polite demand letter to the person responsible for these things at the school. In fact they are to give immediately once you've asked. Next step make sure you have the correct Chinese name of all involved or the Principal, owner, etc. Then you go to the PSB office responsible for the FEC. Get the card of the person you speak to and a phone number. File a complaint in as much detail as possible. Locate the office of SAFEA and file a complaint there. While you're at the office of SAFEA call the principal and tell him or her you're there and ask for the correct spelling of their name. At this point alarm bells should be going off in their heads and you should get your docs the next day or two. Last but not least while at the PSB ask where the office of procurement is (district attorney). File a complaint again in detail. They're required to investigate ANY complaint coming across their desk. Make sure you take your passport and a copy of your contract if you have one.