Big if true, can already see the Chinese shills defending this on here. Just separate them so China have their own server they can support their own censorship
I feel like I am in a special position to weigh in on this topic, as the only person on this forum who is familiar with the player in the screenshot as well as a member of a Chinese clan and a West Australian player. I want to add a little bit of information to this.
The plurality but not outright majority of players in East Asia (a Singapore server) are Chinese. This means that proper moderation does require Chinese language skills. The english version of the game currently doesnt even have Chinese characters, so English speaking admins would have trouble even differentiating troublesome Chinese players from each other.
Chinese clans largely congregate in an equivalent of discord referred to as YY, which is extremely insular to the extent that it requires the use of a Chinese phone number to join. Despite this I did manage to get in, but predictably do not have speaking rights as my IP is not Chinese. The only reason that I bring this up is that the Chinese players in my clan were surprised that foreigners were so heavily blocked from using their platform. That is, there is a little bit of ignorance on the Chinese player's parts on how heavily locked down their part of the internet even is.
Chinese understanding of English is extremely poor, with only 1-2 members out of 20 even able to understand basic phrases, relying mainly on google translate (which is hard to do from ingame text in an alphabet you're unfamiliar with). This is relevant because the specific phrase screenshotted was likely just once sentence in an array of sentences, given my knowledge of the player involved.
Elements of the Australian community, including the person in the screenshot have in the past been deliberately antagonistic. This particular user deliberately trolled both the Australian Mordhau community, the European warband community (I believe, I have only heard second hand from Giru that someone from our community was talking ****), as well as deliberately tried to prevent battle servers from functioning by tking from multiple accounts. This doesn't mean that he was doing this in this instance, it just should be noted that you should use a better example for this topic than this specific player.
This does not mean that this is good in the slightest, it is terrible. But just try to understand that the single in-game screenshot is not the best example of admin-abuse.
I am still strongly opposed to this simply because my political views aren't exactly equivalent to the CCP, and if some Chinese admin really wanted to dig in to it, they might have motivation to get me banned purely because I have criticised China heavily in the past. Also being a person who is primarily playing on East Asia makes me at particular risk, especially as I am involved in the East Asian clan scene at the moment. If for example we get a suspected aimbotter from a clan (hint, there is one) to go under proper scrutiny, then it is possible that their clan will retaliate and get a player like me banned in response.
There's other aspects to this that are also awkward, like the low-level animosity that exists between Korean/Chinese and Japanese players, and how that is another potential boiling point.