Ethically, an American company should not be doing business if it involves censorship like this. Right now, things like LGBT+ rights are (sadly, in my opinion) still political decisions, as are decisions surrounding the ever-violent conflicts in the Middle East. Microsoft seems to err on the side of progressiveness in most of these political statements, proudly proclaiming "pride" on their Twitter page, presumably because it makes financial sense more than anything. Microsoft has no problem with politics if it serves to make them money.

The sad state of affairs is that money is more important than ethics for most companies. Microsoft made a political decision and that decision was that it's okay to censor recent history of violence against unarmed protestors.

I don't see how you cannot blame them for that decision unless you've fallen victim to Chinese propaganda.