I'm a big fan of China in many respects, and I think their central government very often get things right - more so than many in the West. But as many sincere fans, I am not just uncritically accepting everything they do as right. In this case I reserve judgement; many things depend on how this is implemented and how it is used.
In my view, it was always obvious that something like this must turn up at some point. The unregulated internet was a lot of fun in the early years, certainly, but it is no longer all that much fun - there are too many things going on that are anything but fun, quite frankly, with scams, false news, rumour mills, organised crime, bullying, people trafficking etc, and the genuinely good things are sometimes drowning in the effluence. So it has to come to an end in some way or other - things like censorship, lack of anonymity and social credit scores are attempts at hammering out some sort of "law in the Wild West" of the internet. I'm not sure they are all good, but eventually we will settle one something that most people will find acceptable, and which will be reasonably effective.
At then end of the day, the internet is a public space, ultimately paid for by "society": the physical infrastructure etc maybe be owned by companies of various sorts, but at the end of the day, their customers pay for it and it trickles down to us (that is the only part of "trickle down economics" that actually works: all expenses are ultimately paid by those at the bottom of the pyramid game). But that being the case, the rules have to be set in such a way that they are acceptable to most people, and most people prefer there to be limits for what you are allowed to do and say.