I find your question somewhat confusing so I will try to break it down a bit.
It is possible to operate legally in China without a WFOE. One can do that with a rep office. It is critical, however, to know the differences between a WFOE and a rep office and, most importantly, the limitiations of a rep office.
All employees in China are required to have written contracts and the penalties to employers without them can be severe.