yeah, well I guess you can understand why China is pretty pissed by game developers because they still portray China as some thirdworld nuclear threat, or something.
It was russians around decade ago, they did the same thing back then, banned books, movies and games that bashed the Russian way, the game and movie studios realized that they lost a major market there, and stopped it. Then it changed to China.
And I'm fairly sure that if you make a game where Americans are presented as evil nuclear weapon toting terrorists with agenda of evil and world domination, I know one country that will surely ban the game.
So, be objective on the matter, especially when it comes to games, China just has a Jack Thompson in charge of things.
And as for files getting screened, well, I can bet you one million dollars that other countries do that aswell, check some images sent from public machines to other countries, world has changed, the terrorist threat is a great excuse to push down human rights. China is just weird that way, they openly do these sort of things, when other countries have secret services and such. You could actually get in close attenttion for your friendly neighbourhood secret service during cold war if you went to the library and took communist manifest and other Marxist books from there often enough. The same is now with bomb building, chemistry books and books about fanatical islamists (that is IF your local library didn't already burn them.)
Terrorist threat, has gotten every country on their toes, and the recent game scandals have gotten alot of people more aware of "how dangerous" video games might be to their children - even if it is just propaganda.