Either way, it was wise to tap the player base. China may want to have their own separate servers, but doing so might also open up the possibility of having optional Region Locked servers for everyone, which was a request for some. Though I'll stay on a Region free server due to having friends in other regions, more options are always nice for those who want it.
Either way, this is a gigantic player-base boon for SE. They'll likely take a hit on the profits having to give licence for a Chinese company to tap that base, but in the end it still will be a huge help in getting this game healthy financially.