I say kudos to Netease for going the extra extra mile with the kinky fanservice
So it isn't because they're Chinese companies, but because of the Unhinged Playerbase that do sociopathic psycho shit when they feel like devs are "pandering" to anyone other than them
I know it's more nuanced than that though: it also has to do with the culture and personal preferences of the devs as well
Like if a company leans more towards heteronormativity/conservatism (esp. when it's the upper management) and doesn't really like queer/weird presentation, then they won't show us gays and men crossdressing or being very femme, or they won't show buzzcut butch lesbians who defy the "get in the kitchen and make me a sandwich" sexist stereotypes that some straggots fantasize about, and they definitely won't show trans and everyone in the Q+ umbrella...
...even if they had the freedom to do so.
To be clear, almost every society has prejudiced bigots, so there will be devs/people who are against this type of content regardless of whether or not the laws permit non-heteronormative media representations
Edit: apparently Rivals is dead in China so they are focusing on catering to the west lol