Some Chinese bloggers have responded by being extremely creative in their use of images. Some Chinese bloggers began posting images of river crabs on their blogs. The joke is that the term for “river crab” sounds very similar to the word “harmonize”, a term that had become slang for “censored” - “My blog just got harmonized.” The term “harmonized” became so popular that it became blocked. So Chinese bloggers began to refer to their blogs as having been “river crabbed”. The watches are a pun on “the three represents“, a political philosophy put forward by Jiang Zemin. This is also a commonly blocked term, so has been rewritten as “wears three watches”… which explains the oddly dressed river crab.
Oh sorry, the porn is only related tangentially. Get the rest of the story, including how porn plays into this system, here.