Ah. Well, China is a third world shithole. Activision has tried to play ball there in the past, so no idea. Getting a legal precedent there and getting ignored would make getting a court order to track down users through the ISPs easier.
I have never worked for M$FT, and I don't care how any of this plays out. They have the resources to end the server outside of China if they want to whether China wants them to or not. With the issues surrounding the UK's recent bullshit a lot of countries are going to be creating their own Great Firewalls.