I agree the best thing to do would be to never work for this school as they do not keep any of their promises and disregard all their foreign teachers as if they are nothing. Stay away from this school. There are many who have had horrible experiences working here and not many last longer than a semester.
No, unis in China won't refuse to issue the required release documents. It's the private businesses that do.
Not to give you any release papers is common practice in China.
I have never heard of an instance where a provincial university refused to provide release documentation and process computer release for a foreign teacher that completed his contract.
Not to give you any release papers is common practice in China. They consider you an investment on their part and don't want to make it easy for you to work for one of their competitors. In other words, you are one of their slaves. The best thing that could happen to you would be not to work at all for such "schools" and not waste your time and energy on them. They will never respect you.
" If you want to stay in China after finishing this contract with the school you cannot get legal work as they won't give you these release papers and you will be stuck".
Be warned about this school. They have not delivered any release papers at the end of the legal working contract. Everything has been fulfilled on the employees side but this school has refused to give a recommendation letter, release letter and FEC cancellation paper to its workers. If you finish your contract and get a new job this school will get nasty if you choose not to re-sign with them. They are smug in the knowledge that these papers are necessary to apply for a new legal working visa and although this is a legal right for workers they have chosen to ignore all requests for communication. If you want to stay in China after finishing this contract with the school you cannot get legal work as they won't give you these release papers and you will be stuck.