Setting up a corporation suggests that the business should pay the worker "wages" or a "salary". [3] One key difference is that wages are considered earned income, allowing the taxpayer to use the foreign earned income exclusion, while dividends are not.
[1] https://www.irs.gov/government-entities/federal-state-local-...
[2] https://www.irs.gov/businesses/international-businesses/roma...
[3] https://ustax.bz/how-to-structure-your-non-u-s-business-or-p...
China lacks a treaty with the USA, which means Americans working in China pay to Chinese social security/medical and they are not transferred to the American equivalents. But ya, you pay SS/medicare on your stock dividends and even your sales to pay taxes (consequently, which you might also pay Chinese payroll taxes on).