If maximum money is your only worth then your company has no standards - and therefore is untrustable to make good decisions towards consumers. Which explains google and apple pretty well.
If we give in to every demand of the Chinese government, things continue as they are. Those 1.4 billion people, hopefully, would demand the products being offered and policies would be (slowly) forced to change.
In what world do you think this it is OK not take action?
Set aside what ever you think about China
"The takedowns come amid a crackdown on unlicensed games by Chinese authorities."
unlicensed, plain and simple for ya there
It doesn't seem like it a license to publish that's being controlled. It sounds more akin to a business license to collect money in app. The article alludes to ad supported games still being eligible for publication. This likely has something to do capital flight controls in China.
“However, this major pivot to only accepting paid games that have a game license, coupled with China’s extremely low number of foreign game licenses approved this year, will probably lead more game developers to switch to an ad-supported model for their Chinese versions,”
https://news.ycombinator.com/item?id=25591897