China's legal system doesn't run on rule of law, it runs on threat of rule by law. In this case, it means anyone who wants to function in china must predict what the government will dislike, since there is no actual Chinese law against making fun of Xi Jinping (but they will shut you down anyways if you allow it).

Sure, if they want to operate in China they are taking the best course of action, but it will hardly be enough since it is an user produced content system.