I think its fine if people want to make movies for the China market, but what I find alarming is copycat behavior trying to bring that sort of censorship here.
It doesn't make any sense to me why anyone should apologize or censor themselves creatively just because someone got salty about it. I find the notion limiting someones creative expression to someone else's judgement of "appropriate" to be despicably egregious.
Sure you can vote with your dollar and time by not watching something you don't like, but its the creators prerogative what to create and what not to create.
Anyone arguing the contrary on the effects of censorship has not looked into the origin of the word.