If YC truly saw no chance for YC-China in the future, then I don't doubt they would come out and say so. However, that's a pretty strong statement, and I don't think anyone can make such a prediction. There is always a chance for a more serendipitous time in the future.
YC is generally Bay Area-only, and after consideration they decided to stick with that.
https://news.ycombinator.com/item?id=17014869
https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...
Edit: maybe I should add that we do moderate posts that are just political, i.e. don't have an intellectually curious angle, as well as threads that depart from the path of curious discussion and sink into flames.
The default answer is simply "no"/"not right now"; not a ton of explanation required.
Maybe because politics was not involved and it was purely an operational capacity decision? I know it's not as fun as silly conspiracy theories.