It will generate anything. Xi/Pooh porn, Taylor Swift getting squashed by a tank at Tiananmen Square, whatever, no censorship at all.
With simplistic prompts, you quickly conclude that the small model size is the only limitation. Once you realize how good it is with detailed prompts, though, you find that you can get a lot more diversity out of it than you initially thought you could.
Absolute game-changer of a model IMO. It is competitive with Nano Banana Pro in some respects, and that's saying something.
I could imagine the Chinese government is not terribly interested in enforcing its censorship laws when this would conflict with boosting Chinese AI. Overregulation can be a significant inhibitor to innovation and competitiveness, as we often see in Europe.