> So if I agree with the CRTC I can't really disagree with China's decision if it is indeed to protect their domestic production. <
There's an importaint difference, though. Canada is only clearing a portion of their airways for domestic productions, not banning imports entirely.
When you do the latter you're restricting your citizens' freedom of choice, and, by eliminating the competition, giving your own animators very little incentive to produce a quality product. (As Ace pointed out, there's some Chinese animators who will do good work anyway, but China is probably also going to get a lot of shabby junk.)