I don't think it will be a problem, in particular, you've gotten your second letter with waiver on interview. Your lawer should inform CIC that your address changed. After your lawyer got the third letter, you will then need to mail your passport to your lawyer, and after got the visa, your lawyer mails it back to China.
I didn't find that there is a stipulation said your case would be cancelled if you have gone back to China. My understanding to the CIC rule is that you're entitled to application in the US as long as your visa's valid period in the US exceeds 1 year. Moving back to China during the assessment process will not impact the entitlement. Of course, you should keep contact with CIC effectively and efficiently. Lawyer could be the bridge.
It's my personal thought and for your reference only, I am not a lawyer.