Yet 'another accident' on the anniversary of the crackdowns of the Tiananmen Square protests. /s
To be clear, I don't care about $BigCo, only HN; and if there's any actual evidence that this whole thing was anything other than randomness playing its usual tricks on the hivemind, that would actually be interesting and on-topic for HN. But note those words "actual" and "evidence".
I personally dislike this a lot, as well, but I can't blame a company for not taking a fall on what is arguably a political decision.
Ethically, an American company should not be doing business if it involves censorship like this. Right now, things like LGBT+ rights are (sadly, in my opinion) still political decisions, as are decisions surrounding the ever-violent conflicts in the Middle East. Microsoft seems to err on the side of progressiveness in most of these political statements, proudly proclaiming "pride" on their Twitter page, presumably because it makes financial sense more than anything. Microsoft has no problem with politics if it serves to make them money.
The sad state of affairs is that money is more important than ethics for most companies. Microsoft made a political decision and that decision was that it's okay to censor recent history of violence against unarmed protestors.
I don't see how you cannot blame them for that decision unless you've fallen victim to Chinese propaganda.