I’ve seen some people saying that this is being done to stay on the CCP’s good side. But I dunno about that. People making ‘Free Hong Kong’ custom designs and China banning the game occured months ago. And Nintendo’s statement here, far as I can tell, is about people who are using New Horizons for business/advertisement uses.
More likely this is a direct response to the Biden/Harris island, which I was actually oblivious to before hearing about Nintendo’s statement on politics in NH. (Hey, I tend to focus more on visiting ‘horror’ dream islands in this game.)