does this kind of thing violate any trade agreements between US and china? should it?
Censorship is a weak attempt at mind control, which is a bit worse than chattel slavery on the list of heinous things that humans do to one another.
Not only that, but in order to implement it effectively, you must be omnipresent, with a finger in every ear and a hand over every mouth. The concentration of power necessary to do that is an open invitation to corruption.
If I had significant influence over US trade agreements, the degree to which ordinary citizens had open and unfettered access to information would factor into every last one of them.