Are they both correct?
1. Mike with his parents is in China now.
2. Mike is in china with his parents now.

Question

Answer

"Mike is with his parents in China now"
is also correct

Answer

Nop.
“with sb" means "in the company of sb; with sb's company".

※ 1. You can say "Mike and his parents are in China now."

※ 2. Mike is in China with his parents now.

with ≠ and

Answer

No.#1 is wrong #2 is correct

Answer

right.like this" A with B is/was..."