As someone who lived in mainland China for over four years i can tell you this is a load of BS. Unless things have really changed (and i know they haven't from being in contact with people), it's just as easy to get games and hardware as it is anywhere else. There are streets in Beijing lined with so many gaming stores, it looks like a non-stop E3. Of course it's all semi-official, they pay taxes and have licenses, just the licenses say "toys and electronics" with no mention of gaming. Authorities look the other way as they know trying to enforce this so-called ban would lead to riots on the streets, just like trying to force the VPN ban will lead to the 50 cent army turning on them. Mainland China has a weird and hypocritical political system that i personally can't stand anymore, but when i lived there i didn't mind it too much, maybe because i was younger. For example, you could import anything from Lik San or Play Asia and have it delivered to your door even though supposedly it was not allowed into the country.
When reading these things you need to keep reality filters on, and remember there are parts of the world where many people think everyone in the US carries an AR15, everyone in Scotland wears a kilt, and everyone in Ohio works for P&G. Well the latter might actually be true