You need to tally up your costs now!

Unfortunately, it's time for you to face the music. You went to China for labor arbitrage, but you will lose all cost advantages if you have to pick up the slack any freaking way. On top of that, it's your professional image, as I said before that you were ultimately accountable to your client, is at stake here. You need to wrap up this project ASAP, and this might require you to cajole, threaten, sweet talk, or be their ***** or whatever, but your top priority is to get the project done. It's probably too late for you to start with another team. Now don't feel too bad, even big companies like Gold's Gym ran into similar issues like yours when they first started. It's cost of doing business, think of it that way. Get the project done, and move on. Next time, you can be nice, but you have to be firm and lay every single piece on the table before you hand them the $$$. Use RFP on all candidates and see if they really have a handle on what you need, i.e., requirements. One thing I found out is that it might be better off for the consigner, which is you, to write the specs than asking the consignee to write one up. This saves time, locks down requirement, and avoids wrangling over if someone understands it right or not in the future.