HN hasn't "decided" anything like what you say. The issue is that nationalistic flamewar makes people angry and dumb (and worse). People who want to rant and post denunciatory rhetoric—whom there are a lot of, and growing—need to find another place to do that. Thoughtful, curious conversation on China-related topics is as fine here, as it is on other topics, and as it always has been.
The way we operate HN hasn't changed. What has changed are macro social and geopolitical trends. We can't expect HN to be immune from those, but certainly we need to protect it from degenerating into a flamewar site, and that is what the vast majority of this community wants from us.