Even if you pull out before entering China, that employer may hold an approved work permit notification against your passport number. If they refuse to cancel it, the record can sit in the system and block a new employer from filing — sometimes described as a 'ghost record'.
Before you agree to a permit application, understand who can cancel it and what happens if the relationship ends first. Keep screenshots of the application and every message about it.
The teacher cut ties before applying for the Z visa or entering China — yet the record still sits against their passport number.