It's a joke with only partial truth to it. Mainly, if the game is in some way related to Tencent or any other chinese megacorporation, they undeniably have some kind of mandated speech removal features. They are not as invasive as kicking you out though, rather it usually acts like a shadow mute. The meme originated from a time where China was not making major investments in media, so it probably was that aggressive back then. But with the rise of an ironically pretty capitalistic china (maoists are just state capitalist retard tankies), they are undeniably trying to be viewed as more desirable towards an international market.
This is similar to Korea adapting a lot of Japanese elements in manhwa and video games, despite korean media during the japanese ban being ironically quite similar to american or even soviet era animation and art. It's simply more profitable to appear lax and open minded.