The worst part they made the player gave up $10,000 of tournament prize he already won. It's a lot of money in China.
-- https://www.ign.com/articles/2019/10/10/verified-chinese-bli...
Therefore the only logical conclusion is that they endorse it.
It effectively IS Blizzard China. NetEase run the servers for the games in China and handle all the IP messiness that comes with launching in that country.
As an example: Amazon doesn't directly run AWS in China but instead has a partner firm that they work with but the brand is still AWS and the two are intimately tied together.
There aren't really western companies in China. They may retain the use of the name, but they have to use existing "partners". It's not like you can just rent an office and staff it, unlike almost everywhere else – heck, you can't even have a website there if you don't have boots on the ground.
In this case, they are as close to being 'Blizzard China' as they can possibly be.
>We now believe he should receive his prizing. We understand that for some this is not about the prize, and perhaps for others it is disrespectful to even discuss it. That is not our intention.
https://news.blizzard.com/en-us/blizzard/23185888/regarding-...