Instead, I think China does this sort of thing to control discourse and/or to send constant reminders that certain lines should not be crossed or there will be consequences.
Both are bad things, but they are different types of bad thing.
Often because it’s the only power some groups can exert on others (in this case China's gov to western companies) so they push it as far as they can into the realm of ridiculousness. Plus people get job promotions or feel-good emotions about "doing something".
Eventually you run out of legitimate things to ban so you expand the scope. Then you can start banning people who complain about bannings, which naturally generating groups with victim complexes warranting more bannings, etc.
This is not unique to China.