The Australian Prime Minister is between a rock and a hard place. On the one hand, China is our major trade partner. On the other hand, America is our ally and also a major trade partner. So Morrison has to dance with each.
Blizzard, I read, have significant investment from China, and China are a massive market for them. So they self-censor in order to stay in China's good graces.
I don't see how corporations and countries can do business in China, without compromising their values and possibly stepping on the values of citizens/customers in democratic countries.