It's no secret that foreign games, be they WoW or Korean imports, are wildly popular in China - thus, in a clear case of local protectionism, the General Administration of Press and Publication (GAPP) has instituted new regulations to keep out foreign game companies:
Under the new regulation, the [GAPP]will postpone the examination, approval and licensing of foreign company products if the companies are sued or targeted for arbitration actions by Chinese online game companies.
It sounds to me like this is dealing with new products and WoW is safe from frivolous lawsuits for the time being - but this is still rife with potential problems, since many domestic games are introduced to China via partnership between foreign companies and domestic operators. The potential negative impacts on domestic companies if games are unfairly held up is huge; and some of the most recent lawsuits involving Chinese and foreign game companies have involved disputes over licenses and operations. Considering Chinese companies have proved they have absolutely no compunction about illegally operating foreign games outside set corporate agreements, I'm not at all convinced this will actually do anything in the long run other than encourage domestic companies to commit IP theft.
China Adopts New Regulations to Keep Out Foreign Online Game Companies [Virtually Blind]