This was bound to happen sooner or later. The US and China are so intertwined economically, yet near polar opposites in terms of values, these sorts of clashes are inevitable. Like many conflicts we've had with China over human rights and individual freedom, the furor from this will pass, and China will simply have more outside voices they will censor from their people while the NBA continues to make its money over there.
While I definitely don't think the NBA or the Rockets should cave and punish Morey, and I support his HK stance in general, I do have to wonder what he was thinking. He's no dummy, so he had to have some idea what sort of shitstorm he'd ignite, especially given the timing of his tweet.