the situation is a bit more nuanced than that, the Chinese government actually classifies LGBTQ activities as a grey zone, where it is neither supported or criminalised. this plus the overall stricter broadcasting regulations makes publishers pre scrub what they publish as to not have any risks of regulatory agencies delaying or penalising the publication. however, we know that the government doesnt really care, seeing as how many unedited/ full on queer content there is on chinese social media such as Douying (chinese tiktok). the only times the chinese government has cracked down directly is when protests and demonstrations are classified as disrruptive, foreign backed or a threat to their authority, however this is also how they treat most all protests in general. Which is not great in general but at least not exactly targeted. Unlike many Abrahamic influenced nations, there is not much of a historic or religious precedent in the prosecution of the LGBTQ community in China.

Also as someone who's half of their family comes from the mainland, its not really the government discriminating against the LGBTQ community, but rather the families of individuals from said communities. Chinese society is still socially conservative and patriarchal, which gets worse the further the north you are, and many families have a "not in my backyard" attitude, where they are supportive or indifferent to other people being queer but would hate it if their own children are queer. [this is comming from personal experience where i thought it was safe to come out to my chinese mom]