The university apologizes. The problem is that they don't repent and they will still do so if they have the opportunity. They are just a tool, used by the government. The government wants to expand soft power, and universities must find ways to complete it. Taking care of foreign students, providing the best facilities, but they think it is not enough, foreign male students need women. They went too far and were sentenced to condemned. If they do more discreetly, no one will care about. It is not the first case and will never be the last case. The government does not punish these universities, because the government is its top supporters.
Not only foreign students, many foreign teachers have flirted, charming, even rape, forcing Chinese girls to have sex with them. Those who have failed, lazy and could not have a good job in the West, quickly became a teacher in China just because they knew foreign languages. And most recently, a black teacher killed a Chinese student because she didn't accept his flirt.
On YouTube, there are several extreme Chinese anti-channels. Founded by foreign teachers. People who come to Chinese teach English, then flirt and marry a Chinese girl, and now he earns more income with Youtube channel - insulting - China
I don't think central government actively support these efforts as it would inevitably cause too much public embarrassments and resentments. It's more like the central government set a target for soft-power reasons and local bureaucrats(university principals, provincial level education officials)tried to do whatever it takes to meet established targets for career advancement. Given PRC is not real an attractive location for good quality international students, officials uses whatever means to meet its target.