I'm a bit late sharing this, but the Chinese government has
officially approved New Super Mario Bros U for Chinese publication.
A couple takeaways here:
First, SSBU should be one of the first approved titles and follow closely behind NSMBU. I'd personally wager that the government will approve of it without many issues. Not only is SSBU a top-tier game on the Switch, it features franchises that the Chinese are very familiar with (Mario, Pokemon, Zelda, KOF and Undertale).
The government's also perfectly fine with approving more violent games like MOBAs, Crossfire (think CoD) and Overwatch. As for any issues, there might be some slight censoring of skeletal characters (Sans, Dry Bowser, Ruyji), but that's likely going to be Nintendo's doing to speed up release as Valve and Blizzard
have previously done, nothing official. On the whole SSBU should be unaffected.
Second, Tencent's distributing the games there. Given that Terry's indirectly connected to Tencent (because Tencent gives SNK and SNK's Chinese owners a helping hand with SNK's mobile games) chances are that
Tencent might bring up LoL or Jonesy for future consideration. The final call's going to be Sakurai's to make, yes. But I have no doubt that since Nintendo partnered with this Chinese megacorp for the Chinese release, Tencent might want a more direct piece of that juicy Smash pie. Smash is, after all, the biggest game with DLC on the Switch.
Third, my personal guess for the official Chinese release remains around Early-Mid 2020 (Around April to be more precise). Could happen earlier, but I'd wager that if Nintendo and Tencent went through all this government red tape they want to be 100 % ready for launch. Also, as I've previously speculated here, Fighter Pass 1 might be bundled in the Chinese Smash release. Not just to make Terry base game (and the other FP characters) but also to encourage official purchases / discourage people from buying imported consoles and games. Grey market consoles are very much a thing in China still.