This just appeared on a music program on a channel of China Central Television, the preeminent national TV network run by the central government of China.
If Gaga were truly banned in China, you can bet your life that her face would never have appeared on this network in a million years.
So far there has been absolutely no indication of a ban. None whatsoever. No statement from the government, no pulling of her records, NOTHING. It was never anything more than a rumor, and just as with anything else about China, or any country that is not on the right side of the US' good graces for that matter, the Western press just ran with it.