I don't see any reasons why they would censor the Z-20 unless they are embarrassed by its resemblance to the UH-60 Black Hawk. I think the reasons mentioned by Blitzo are more reasonable. As for the budgetary issue's. There are a dizzying numbers of military projects active in China these days. But China also has large gaps in its defense equipment not to mention training, doctrine and tactics. But they do have to prioritize what they will procure. The Z-20 utility helicopter may well be low on the priority list as other equipment needs are much greater. Like the Y-20 strategic airlift. As for utility helicopters China has the Mi-17, the Z-18 family and the Z-9 family but its strategic airlift fleet consist entirely out of old and second hand Russian planes.