It almost seems more like the Fred Phelps "C'mon, Faggot, I Dare You To Fucking Hit Me" school of public relations. Except that the Phelps clan would just sue you, whereas this bunch would put you in double secret prison (AKA the factory where the very cameras they're using to shoot the piece come from!)
I love how there was just an obligatory asian-playing-starcraft during the female reporters segment. Maybe there would be a revolution if the government had the balls to block battle.net
Either China is incredibly naive and awful at media relations, or the whole idea of media and freedom of speech in Asia are completely different from the West. Probably a bit of both.