The situation of sex in China is kind of in between the west and Japan. While China is fairly traditional and a little "prudish" at times, like Japan there was a tradition of enjoying sex and many Chinese in the old days were quite open, shall we say.
The Communists made it so that sex was only to have children, but you can't keep 1.3 billion people down for long! Now that China is modernizing, people are starting to loosen up. Girls (in the big cities anyways) are starting to wear miniskirts and tank tops in the summer.
Unlike the West, sex was never actively frowned upon in Traditional China. In old China it was natural and expected, and an important part of keeping one's "Qi" (body energy, internal yin and yang) balanced.