It’s probably not so much about not looking bad and more about enabling productivity. I’m sure they are getting pushback from many companies which interact with foreign nationals whose work is affected by the GFoC.
I haven't been to Hainan though so I don't know about any particular issues there.
Anecdote time: I once met a mainland Chinese software engineer who told me that his department pays for a VPN subscription so they can access the uncensored internet for work.