I mean it's both, but they literally can't release a movie with prominent LGBT characters in China. It is against the law there.A thousand times this. If Chinese audiences meant a damn the Asians would have had our Hollywood representation a long time ago. Invoking yellow peril to disguise transphobia at home is...well, I shouldn't be surprised, but here I am.
Also, my understanding is that Chinese audiences don't actually care about asian representation in hollywood films, probably in large part because they can already get that from their domestic film industry.