This character is simply not used in the largest concentration of Chinese people on the planet. It’s a non-solution that some very specific groups in Hong Kong and Taiwan have been pushing.

Chinese has had non-gendered pronouns in written form for most of its existence. 他, the current masculine form, has been a generic, third-person pronoun of no gender applicable to any person or thing for about a thousand years. Gendered written pronouns were introduced under pressure from western sources complaining of their lack making the translation of Chinese difficult, ironically enough, in the 1910s, specifically at the time introducing 他, 她, 它, 牠, and, charmingly, 祂 for masculine, feminine, inanimate, neuter, and supernatural/godly respectively.

Two things should be noted aside from the extremely recent nature of these changes.

1. These five pronouns were rapidly shrunk down to three: 他, 她, and 它 with the latter now being the general purpose non-human (animate or otherwise) pronoun. (One could argue that 祂 is still used in some speciality cases in religious texts, but I’ve not seen it in the wild; I tend not to read Chinese Bibles or Qur’ans, however, so I have no informed opinion on its continued use.)
2. These pronoun differences are written form only. All five of them are pronounced tā. So in verbal form, Chinese has always had, without interruption, gender neutral pronouns.

So what does this have to do with this “new character”?

This new character is used literally nowhere in China proper (and barely used outside of China except in some very narrow groups in Hong Kong and Taiwan). You will not find it in any Chinese social media. You will not find it in Chinese documents, online purchase sites, etc. It is a non-solution to a non-problem because for AGES before this character was introduced the Chinese on the mainland (the part that’s, you know, actually called China) has been using a solution that is practical and accessible to anybody on any kind of writing system. That solution is to use “TA”. Yes, the Latin alphabet and yes all caps. You will find TA used in Chinese social media. You will find TA used in product descriptions and other such commercial use cases. (You won’t yet find it in official documents, of course, but nor will you find U+323BF there, and TA will be used in official documents at some point as generations grow into power, but U+323BF will never be used.) Why? Because TA is just the simplest, easiest, most accessible, and thus the most useful solution to the problem of returning to China’s having gender neutral pronouns. Returning to 他 is a non-starter, sadly, because it has become too entrenched as masculine. But using TA is practical and has been happening since long before Siufung Law started championing U+323BF.

Without any need for fussing with the Unicode Consortium’s bizarre process that blocks characters in actual use in Chinese from inclusion while accepting this new character introduced by a tiny, tiny, tiny fraction of the Chinese language community as a new character.

(As a side note: the so-called X in the character isn’t an X. That’s just typical Euroecentrism rearing its ugly head. The actual radical in use is 乂 and it is a character that has existed in Chinese since before there was a Latin alphabet. This new character is 乂 (yì) paired with 也 (yě) much like 他 is 人/亻(rén) paired with 也. Thankfully, as impractical as U+323BF is for general adoption, it isn’t a linguistic abomination like latinx. It’s actually Chinese.)

Not every “step forward” is an actual step forward just because it’s the one westerners heard of. Sometimes non-western problems are solved by the non-westerners themselves without massive arguments and culture wars. Indeed for a lot of cultures this is the norm.