Possibly, but not necessarily. We'll probably never know what, or why or how this came about. It's not exactly usual behaviour. What ever happened, it sucks.
It is sorta unusual, honestly. (Again, if this is actually true.) I can't really think of another example of a Chinese corporation effectively barring a Japanese company from releasing their game in the West in exchange for a Chinese release.
Hopefully not a move that sets a precedent.
By the way my prior post wasn't meant to be as harsh as it sounded, lol. But yeah news like this doesn't make me particularly stoked.