I'm in the middle of setting up a website in China. The way things go is that you have to get the icp license. To get it, you have to agree that you will censor any user generated content that should be harmonized (guidelines are not very precise, but the chinese government regularly provide a list of topics that are not allowed for the season). We actually outsource our censoring to a chinese company for 500RMB/month as it'd be a hassle to hire someone only for this.
On the other hand, our website is bilingual, and we don't really need to monitor the english part since the government doesn't care...
There's a whole industry build up around this? How bizarre.
When such a post is removed, it's typically referred to by netizens as being "harmonized", a play on Hu Jintao's "Harmonious Society" slogan [2].
You should check out the archives of a site like chinasmack or chinahush[3], who have translated summaries of popular chinese message board topics and gives a good feel of the day-to-day life of a chinese netizen.
[1] http://en.wikipedia.org/wiki/50_Cent_Party
[2] http://en.wikipedia.org/wiki/Harmonious_Society
[3] http://chinasmack.com http://chinahush.com