That's primarily an excuse foreign companies use to explain their failures in China. They want to run their business in exactly the same way the do in their own country, they expect the users to behave in the same way as their existing users. Then when they fail, they blame everything on the government. The Chinese government certainly have different values and believes from western society, so do the 1 billion Chinese people.

The truth is, Chinese government treats foreign companies much better than local ones. Foreign companies are much easier to get loans and tons of other resources. But it certainly defines rules that all players in the market needs to obey. Do Chinese people buy Apple products because Cook has been sleeping with Chinese gov? Did Baidu, Tencent, and Alibaba all succeed because they followed instructions of Chinese gov?