Overwatch League matches in China have been postponed. As you may have guessed, the reason is the Coronavirus outbreak. The decision is more than likely a precaution to avoid potential health risks and further contamination.
Blizzard announced that all Overwatch League matches that were supposed to happen in China during February and March 2020 will be postponed. While it's a major blow for Overwatch esports, it definitely looks like the lesser evil since the alternative is to potentially expose more people to Coronavirus.
Considering the potential ramifications that LAN competition could cause, this move was not unexpected and other companies have postponed their events as well. Riot Games already postponed all LPL and LDL matches in League of Legends, even though the teams already had a condensed schedule, hinting that the urgency of the situation is by no means worth the risk of organising such events.
Blizzard's announcement also made it plain that they don't want to risk the health of players, fans and staff. They also noted that more information will be relayed as they see further developments.
There are currently no indications on when the outbreak might be contained, meaning that suspending the games from February and March 2020 is not overreacting by any organisation involved.
As for what this means for Chinese esports, chances are it will recover quickly after the virus is contained due to the immense interest from the audience. Esports viewership numbers generally get inflated as soon as Chinese viewers are factored in, resulting in hundreds of millions of interested people.