This is current line of struggle, especially between the younger and older generations. Interestingly, different sectors of the media have different approaches: CGTN for example is very progressive on LGBT issues, while weibo seems more regressive. Some good vids:

• CGTN: Jin Xing: Transgender woman talks on life challenges faced in China, guts to correct them
• CGTN: Gay Leap Forward: LGBT in China
• AsianBoss: Chinese React To Social Media Ban On Gay Content