There was some discussion of LGBT in China here a while back. This thread, and the link to a thread on /r/sino were pretty enlightening for me. The impression I got was that it was unnecessary fanning of political flames.

https://lemmygrad.ml/post/741662

In foreign countries, the US will often try to hide their spy operations behind things like gay nightclubs, so that the governments of these nations crack down on them, and the US can sell of their "rainbow imperialism" to their people and so that gay people become increasingly marginalized (and increasingly easy to radicalise.)

That would be my guess, that this place was shut down because their owners were found to be in bed with the yanks or something like that.

Not sure why either.

On an unrelated note, some people in China use the term for "comrade" (同志) to refer to homosexuals, you can see why this very insulting.

Some people don't get it, it's not meant to insult homosexuals, it's meant to insult socialism and the CPC, because we call each other comrades!

Copied from my other reply:

The organization mentioned in the article was called “北京同志中心”, which they mean to be “Beijing LGBT Center”, but I would think it meant “Beijing Comrade Center” if I didn’t know it was LGBT-related. They renamed to “北同文化”(Beijing "同“ Culture) later probably to avoid this. “同” in Chinese means same, and can be short for “同性恋”(homosexual).

Another update:

You know what, I think it's both an insult to socialists and homosexuals, because people who use it to insinuate that socialists are all homosexuals think that it would be insulting to call anyone homosexual.

I went to the Center's website that is linked on Wikipedia, and the all the images on there are porn. I can't read Chinese so idk what the text says. What's up with that??