BlueMooner: I've also heard, but not read up on, that China has somewhat strict rules on internet access and usage for their citizens, so I don't know what their views would be on a distributor that has games with sex, nudity and violence. I think I even recall reading a thread here by a Chinese user upset that they were blocked from downloading gog games they owned.
It's a bit more complex than that. Yes, the government blocks A LOT of western websites. Google, youtube, Twitter, facebook,... However, I'm convinced that this has more to do with protectionism than censorship as we usually understand it. Blocking Western social networks has allowed their homegrown social networks/services to florish. Just have a look at Tencent: they cater almost exclusively to the Chinese market, yet they're bigger than Sony now. Tencent is currently working on their own gaming client. The steamcommunity-urls have been inaccessible to me for a few months now (the store & library still work, though). Coincidence? You be the judge.
As for violence, sex, etc: Yeah the purveyors of common decency might have some hangups about that. But it's not as extreme as you'd expect. As far as games are concerned, censorship is waaaaaay more severe in Germany or Australia. Chinese Steam blocks a handful of games (most of them probably because the Chinese are portrayed as the bad guys). Pornography is a no-no, of course, but the general rule of thumb is: don't ask, don't tell. You can sell pretty much anything on your store, but as long as nobody is made aware, no one cares.
As for gog users getting locked out of their games: that's thankfully been resolved for a long time now and was an unfortunate side effect of China blocking some content delivery networks. Once gog switched to a different cdn, there were no more problems.