Now I'm not saying D&D in its current form would work in China, the demon/devil stuff is obviously problematic and a skeleton on the cover of the DMG isn't going to work either. But WotC can find a local company in China to partner with, to at bare minimum get the game's ruleset into China.
Which is what I have said the whole time? Please show me where I have said that fantasy in general is problematic in China and not just specific aspects like undead.
The question is if there will be a totally separate edition of D&D or if some of the required changes will filter back and affect future products for the global market when WotC does not want to pay for two separate products. That could mean future adventures could be made to also appeal to the chinese market (very difficult) and avoid things which are not appropriate in China, either because of censorship or mentality differences for example.