Yeah but the problem with your argument is it's the Chinese people that aren't LGBTQ friendly. The communist government actually is.

Here's an article from the CCP celebrating LGBTQ people getting their equivalent of civil unions.

https://news.cgtn.com/news/2019-08-09/LGBT-couples-in-China-file-for-voluntary-guardianship-J15eC8QcrC/index.html

Here's a list of popular Chinese Boy Love dramas that were created in China and approved by the CCP

https://litdarlings.com/10-best-chinese-bl-dramas-to-watch-now/

Yes, China censors actual kissing and physical contact in their LGBTQ films, however, that actually applies to straight films too. China just likes to censor things. However, it does not actively pick on LGBTQ.

The problem is the people, as per the article

Being gay is not illegal in China, At home, Wen said she regularly gets judgmental stares on the street for wearing her hair short like a man’s, and was once asked by her barber: “What happened to your life?”