That's a very spicy headline, but the case described here (we built a time limit feature for China) is pretty standard stuff. From our perspective, this is like when any government around the world has specific legal requirements around parental controls or content restrictions. We think it's better to self-regulate than to risk government regulation or even shutdown of the game in a region.
Another good example of a similar case might be what we did in Korea with account>ID linking. The South Korean government requires that accounts be linked to their equivalent of a social security number, so we play by the rules and built those hooks for that region.
If we were ever asked to do something actually nefarious by a government, we'd have to consider pulling the game from that region. That hasn't happened in China.