Yesterday I fielded a call from the Chinese Consulate in LA. They informed me that our agency was not accredited with the Hague Convention, and that 'all' I had to do was switch agencies and fill out a new application form. To be honest, there was a fair part of the call where I thought it was some kind of weird adoption scam. But he never asked me for money, and at some point I realized that this Chinese man I was speaking with was probably actually with the Chinese Consulate. I'm not sure how much he understood from me--I kept trying to tell him that there must be a misunderstanding between our agency and the consulate--but I managed to convince him not to send everything back to us and made a quick call to our agency in CO. Our counselor thinks they didn't get the Hague accreditation paperwork for some reason, so she faxed it over and tried to call them back. I guess she couldn't get through to check with them, so we're still a little in limbo.
This isn't the current bottleneck in our process (that would be US Immigrations), so I'm not really worried. It'd be nice to hear back from them at some point, though.
Note to adopters: If you get a call like this, best to ask for a reference number!