Compromising situation...

That just goes to remind you that... If your foreign boss is a bit of a dick, pretend to be nice and get your Chinese friend to somehow involve him in a bit of the good old Chinese mutual sinning at a KTV, then film it. It doesn't matter whether the sin is ketamine or prostitutes, you'll end up with golden blackmail material. Blackmail is probably 'illgel' in China but that wouldn't matter one bit as they never enforce any of their laws properly.