>In someways China is ultra-capitalistic. They will sell what people want.
Nothing could be further from the truth. Pornography, anything deemed prurient by the government, anything deemed corrosive to social values, even trivial things like the depiction of zombies and ghosts in media, is strictly controlled by the communist government of China without respect for corporate profits.
Maybe China isn't doing anything. They just allow a company to deliver exactly what people want and people eagerly lap it all up.