Get paid working in China?

Due to F-1 to H-1B gap, I may need to go back to China and re-enter as H-1B. My company is thinking of hiring me as an independent consultant and working on my current projects during the time I was in China (3 months) and pay. Does anyone has experience of working as an individual in China and get paid by a foreign company?
We are not sure if this is legal both for the American company to pay an individaul outside US and for me in China. Pls share your experience - thanks a lot!!!!