Because of in-app billing api, Google Play doesn’t allow the app to be distributed to a few countries including a huge market - China. Is there a way to remove the IAP and submit that version only to Play Store in China without updating the current app in Play Store?
I dont know the answer to your question but I do know something about China (I have been living there for the last 5 months).
China is a big market. If your game is in Chinese 
So if your game is purely in English then do not expect it to do well over there 
Edit:
Unless there is no text or speaking in your game of course
I believe you would have to upload a separate APK without IAP’s and limit distribution to China.
Also, noone uses the play store over there.