Beijing office is effectively holding my passport

I have a one year tourist Visa, and applied to exchange this for a temporary residence permit. My wife is Chinese.
I have held this residence permit for the last six years, but the last one expired while I was in Australia, hence the trip back on a L type. Application was made, and I expected to pick up the passport in the usual 8/10 days. Instead the processing time has been changes to three weeks! Normally no problem, but I am returning to Australia before this date, so I need my passport to travel. When I pointed this out, and asked to cancel the application and return my passport, all I got was a firm NO , pick it up on the 28--(when I should be Australia. No amount of reasoning would get a change of answer, and I was told that once started an application could not be stopped, that there was no way to pay extra for a speedy service, or no way to get it back! It was on the guys desk round the corner!!!

Is this correct , or how do I get some action, or who do I complain to, as I was not allowed to speak to a senior.