Well, I hope you already dropped Steam then. They're making a special client just for China, to be clear, this client will be fully in line with with guidelines the Chinese Government demands, and used specifically in the Country. Most Entertainment platforms from Movies to Videogames have some sort of relationship with China these days as well, actually pretty much every company/product you likely have in your home has some sort of relationship with China as they manufacture quite a bit of products. Tencent has bought quite a lot of stock in various publishers and active relationships with others, like Activision-Blizzard. Personally, as long as whoever does business in China keeps China's demands only for China, there is no issue for me. China runs it's country however it wants, if the people don't like it then it's up to them to change it. Other countries have various regulations as it befits them, Germany for instance doesn't allow depictions of the Swastika and such in games. It becomes an issue when one country's political ideology starts to affect things for everyone in the world. I don't live in China, I don't want to be censored like they are.
As for this situation, Perhaps a little more could be done but Taleworlds has corrected the issue for the most part. From the sounds of things it seems like a simple abuse of trust from people who helped with localization for the game in that region. As long as Taleworlds has realized that the abuse of trust has occurred and are likely scrutinizing every report they make on a case by case basis, or simply not give authority to take reports from that specific forum then, as far as I'm concerned the issue is solved at that point.