Here’s one of the things I’d never considered when it comes to localization. With tensions between these countries so high and SEGA trying to break into the Chinese market I can see why they may have such a problem with this.
Jung-Sheng Lin posits that by simply using the line the “country” of Taiwan in the hostesses question Taiwanese gamers praised SEGA for being progressive or siding with Taiwanese people that would like independence from Chinese rule. Of course as soon as Chinese celebs started hearing about this and the news started spreading SEGA needed to patch the game and remove the dialogue completely so as not to stir controversy.
Something that should have been a nothing issue needed new dialogue to be recorded and an entire patch rolled out even though the game hadn’t officially released in either country yet!