As I recall, Blizzard decided to remove skeletons and some other things from World of Warcraft years ago in order to enter the Chinese market.
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However, in this case, we're at an Asian (not Chinese) esports event where one should be free to express their opinion. It is not as if we don't see skeleton cosplay on esport events being banned, or that Germany demands Wolfenstein esports events (?) don't contain blood and Nazi paraphernalia. It is not as if the USA complains about a nipple on TwitchCon in Amsterdam. This is about a country applying censorship beyond their jurisdiction.
Also, Blizzard only removed them from the game in china
What would be more disturbing is if they had to rewrite some orc-politics story so it wouldn't offend chinese sensibilities, and US consumers got the rewritten version as well.
The movie Red Dawn(2012) was a remake of a 1984 action film where a communist army invades the US. They updated the invader from the USSR to China, come to "repossess" the US after we defaulted on national debt. This offended the chinese, so the producers had to spend $1M editing every reference to china in the film and making it a North Korean invasion instead. This was the version US consumers were sold.
Cutting LGBT characters and banning people who criticize the regime is entirely different.