If this guy really doesn't want to be sensored then he needs to go pay a hosting provider to host his own website. Then he can blog about what ever he wants. I host my blog on my own website because I know I can trust myself to not victimize myself with political concerns.
Read the story:
http://rconversation.blogs.com/rconversation/2006/01/microsoft_takes.html
http://scobleizer.wordpress.com/2006/01/03/microsoft-takes-down-chinese-blogger-my-opinions-on-that/
MSN really has two options:
1) get MSN blocked by the Chinese government
2) sensor the blogs of Chinese citizens.
The best business choice would be option #2. The best moral option may be option #1. This is quite a delema for MSN. Who wants to be cut off to potintially over 1 Billion of the worlds population? That's just not good for business. I think the less risky method is to sensor Chinese blogs.