It's a violation in the moral sense, depending of course in your morals. Twitter's image involves the protection if free speech, so it's problematic for them.
Yes, but censorship is a slippery slope to silence and government abuse. Eventually Twitter and/or the People will need to make a stand against tyranny if they feel human rights and free speech are being overly obstructed.
The wiggle room is that maybe, when Twitter, Google and Facebook, and every other company that values free speech (if in fact they actually do) pulls out of their country, the citizens will realize how shitty their laws against free speech actually are, and have them repealed. Twitter may have principles, but they're sacrificing them here in favor of German/Chinese revenue.