I would say that the company sucks, obviously they are not legally allowed to hire foreign workers in China and tricked you. But on the other hand just how stupid are you to believe it when someone tells you that "it's okay to work on a tourist visa"? When going overseas always ask yourself "would I do this back home?", would you take the risk to work on a tourist visa in your home country, especially if it's the US or some European Union member knowing that illegals get jailed and deported at their own expense there? I doubt you would, so why doing it in China?