Yeah that is absolutely what it sounds like to me, these are toys that many people played with as children or would be willing to give to children to play with. Pretty harmless unless it catches you in the eye. They are specifically designed to not be dangerous. I've never heard of any other type of air-fired plastic pellets at least. Pretty enraging and hopefully Mr. Hohn is able to make it back to American soil very soon
Hong Kong has entire streets dedicated to selling replica guns and other Airsoft equipment. Airsoft (known locally as "wargames") is hugely popular in Hong Kong and completely legal.
Accroding to Chinese law, airsoft BB is illegal, that might sound absurd, but it is the law. And it is selectively enforced.
There are stories that people get penalty just for selling toy guns, http://news.sina.com.cn/pl/2016-12-31/doc-ifxzczfc6640913.sh... in Chinese). It cause some discussion and debate on the internet and within the law realm, but by 2018 the supreme court gave some guidance for such case. https://www.spp.gov.cn/xwfbh/wsfbt/201803/t20180328_372604.s...
Personally I don't think it is a leverage for the trade war, the laws in China is not so mature as in US, and tend to be more tough when it involves guns.
edited for spelling error.