No, it is not ethical to outsource the manufacturing to a country who is repressive, limits personal freedom and engages in censorship as it is following the practice which are against the liberty of humans. These actions must be condemned and no business should be given to stand against their actions. Also, in case it is outsourced, it will impact company’s image.
It is unethical but Legal. Outsourcing the business to new country is totally legal but in this case, it is unethical as the acts of country are inhuman.