I don't think it is a valid point to compare Chinatown with modern-day China. Most people living there are several-generation Chinese Quebecois who speak Cantonese, rather than Mandarin Chinese, the official spoken language in China. Chinatown nowadays is more a tourist spot, which attracts tourists (including even Chinese from China) due to its unique history and exoticism.
I think this hotel building, along with the to-be-built condo in front, would have a negative impact to the character of the neighbourhood. They are right beside the Gate with such a huge volume, belittling the existence of the Gate and surrounding buildings. This somehow kills the history and exoticism of the neighbourhood. Not sure if the small business owners in Chinatown would anticipate those negative impact.