There is a lot of misinformation about the situation here, mainly because of the misleading title. The game created by the Chinese company is not a clone of the game created by Playsaurus.

Here is the game created by Playsaurus: http://www.clickerheroes2.com

Here is the game created by the Chinese company: http://m.7k7k.com/android/11525.html

The games look nothing alike. The dispute is about the title of the game "Clicker Heroes", specifically the Chinese translation of this title "点击英雄". A Chinese company created a game with this (rather generic) name and filed a trademark for the name.

The company was granted the trademark because they were first to file for the trademark and China trademark law works on a first-to-file basis. The same law applies in many countries (including countries in the EU). Playsaurus made a mistake not filing for the trademark in China before and was punished for that mistake.

The actual controversy here has nothing to do with Chinese law or the Chinese company. The controversy is that Apple took down the game in all regions despite them only violating the trademark in China.