What the article says is, of course, horrible. But even if you believe it, it is parents who put their kids in conversion camps. The only part where the govt. comes in is with the assertion that some people heading these "schools" are members of the CCP (which has over 90 million members so c'mon). There are two other articles in this series but they are paywalled so can't talk about them.
Here is a good article covering LGBTQ+ news in China (positives and negatives).
Here is some direct rebuttal by someone more educated.
All this kind of coverage in Western news does is make certain conservative voices within the Global South associate lgbt rights as "western" and hurt marginalized people within.
The Chinese government is totally at fault here for allowing these shitholes to operate. And if cpc members are involved then it's even worse.
It's not some goofy ass scheme by Xi himself but is still a human right violation happening under the Chinese government.
I'm normally willing to give them some leeway, but this is egregious. What is to be gained by allowing this whatsoever? It's not like cracking down on this bullshit is going to deter Western investment.