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They'd likely just fold and declare bankruptcy. Not sure how that works in china, but in general it absolves them of personal responsibility once the assets are distributed.
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That's not entirely true. There are various reasons as to why personal liability can and will come into play, one of them being gross negligence, another malicious intent, and both apply here. If you want an example, in my case I have written confirmation that they were aware of my refund request and an agreement to have my miner hosted in their facility, with that knowledge they still went ahead and shipped my X-3. That is malicious intent and as such a reason for personal liability.
True, but I don't think it would necessarily play out in bankruptcy court. It may, but it's more likely a criminal matter.