From the reddit discussion[0], this appears to be a misreading of the law and it is actually talking about online ad publishers blocking competitors' ads through malicious software.
[0] https://www.reddit.com/r/worldnews/comments/4u2jd4/china_wil...
[0] https://www.reddit.com/r/worldnews/comments/4u2jd4/china_wil...