There was an olympics in Beijing . So holding the olympics committee to some democratic standard probably won't work.
I'm aware it isn't a democracy, but it doesn't appear to sanction official discrimination in the same way as Russia on this issue. If you look at the rest of [1], you'll see it also has a long history of (debatable) tolerance for homosexuality.
(I am aware that is has a significantly different attitude to race than the UK and US, and I'm not sure I'm happy with it, but again I haven't heard of examples of official persecution, or police turning blind eyes to attacks on such minority groups.)
[1] http://en.wikipedia.org/wiki/Homosexuality_in_China#People.2...