I interact with colleagues almost on a daily basis who are using Microsoft products in China on an M365 tenant outside of China and it works. There's infrequent occasional challenges with bandwidth for calls because the great firewall in your local region is hitting capacity or is employing some rate shaping, but usually disconnecting and reconnecting fixes that, and a VPN isn't a magic bullet for this issue either, it might help, or it might not.

What you do need to caution against is unexpected dependencies on Google cloud - hard coded DNS for 8.8.8.8, default search provider (switch to bing), Google translate (switch to Microsoft translate) and captchas many of which are Google hosted are common pitfalls.

Also be aware that Google maps are very out of date in China and any western mapping service is going to have an annoying GPS offset that makes the use of the map for accurate location difficult.

Having a roaming SIM card for data access that is tunnelled back to the home GSM network and hence unrestricted is a useful backstop even if you don't intend to use it day to day.