I actually am on the blacklist (by the PSB (public Secuirty Bureau) because my former employer lied to the government, said I ran and couldn't be contacted so they cancelled my residence permit without verifying what the school said to be true. Lucky me, I have the proof that this is a lie so i will be taken off of the blacklist.

Truth is, I took the school to court. Arbitration to be exact and I won. This is proof of the lie so I won't be blacklisted. Don't run, they can blacklist you with reason then. You need to take your case to arbitration (if you want that money which is rightfully yours) which is free, court is 5rmb. Want to stay off the blacklist but stop working for them? Go to your local PSB building (Public Security Bureau Exit-Entry Administration Department) and explain what is going on. Either way, if you leave before the contract ends you MUST inform them. I know this because the woman I dealt with hated foriegners (or was bribed I am sure) said it was common bloody knowledge that you go to their building and inform them of changes. So inform them of the situation.

I am sorry to hear you found yourself in a similar situation. You have to be careful what you do because I know from experience, Chinese law almost protects these bad employers to a fault.

If you need further advice I can be reached at njeg@hotmail.com
Best of luck