Morality is for people. Companies should just follow the laws of the country they are operating in. If we decide that isn't morally acceptable, then we can 1) stop using their services, and 2) push for change through our political representatives.
I agree that if Blizzard were to respond to the loss of customers by pulling out of the Chinese market, then that would be not entirely apolitical. Still, it is far less political than they are presently.