Whether I have sympathy or not for this really depends on WHY Chinese audiences feel disrespected.

If they feel like Chinese culture, history, and mythology is disrespected, thats a fair concern. We live in a time where cultural exploration is desired, but very few projects actually put in the effort to accurately portray the cultures that they're putting on screen. Xiran seems to know at least to some extent what they're talking about, but its entirely possible that Dunning Kruger is in effect. So, it's possible, and even likely, that there are things in the book that either misunderstand certain customs or imagery in an attempt to make it "cool" that end up spitting in the face of certain ideology, and if thats the case, then they have every right to not want this movie to come out and spread misinformation.

... ON THE OTHER HAND, China as a society, especially under the CCP, is patriarchal, collectivist, conservative, and totalitarian as FUCK. (fun fact: Shang Chi was banned in China not for any actually offensive content, but simply because the protagonist's father was the villain and Shang Chi wasn't framed as bad for rebelling against him, and they considered that to be obscene and culturally distasteful. I'm dead fucking serious.) So if the issue they have is that it's a violently feminist, borderline anarchist book that dares imply that patriarchal systems are inherently corrupt (not to mention offering polygamist representation, and thus containing homosexuality as well), then the bastards can kick fucking rocks for all I care. Cultural representation is cool and should be done more (with respect, research and intelligence). But if your culture has oppression and bigotry built into it, those aspects of the culture, and anyone who defends those aspects, can go fuck themselves.