From what I understood, there is a Chinese version of Wikipedia (because the engine in free, anyone can create a wiki on any subject). That version is not under the control of the Wikimedia Foundation.
However, the Foundation discovered that there are apparently editors and sysops from China who are actively trying to subvert pages in the world-available Wikipedia, and the Foundation is trying to find a way to put a stop to that while respecting the "Encyclopedia anyone can edit" mantra.
What a nightmare.