I am Chinese, I am not in China currently but I do know some information about playing ESO in China.
It is possible (by that I mean no ban and no VPN required), but it will most likely experience similar issue like playing in ocenia area (lag pin etc)since server is far away
Some say playing on EU server and/or using game-accelerator will improve performance, but I cannot confirm that
ADD: And Beijing should have one of the fastest internet connection in Chinese regions
hmmm
Interesting question because I never had a xbox
Some digging says you probably don't have to, tho chinese region exclusive games (if you ever want to try those out)won't be playable on foreign/Taiwan/Hongkong xbox, and chinese xbox store only fix the mainland xbox edition
I play from Shenzhen on the Xbox One NA server, I've lived here for 18+ years though I'm British, not Chinese. I've played ESO here since launch on Xbox.
You will need to use a VPN, the lag using the local connection makes the game very unstable (probably due to the 'Great Firewall'), even with a VPN you will not be achieving any dps records. PVP is ok too. I've played from the UK when I visit, and it's a lot slicker and more responsive, but from China the game is entirely playable.
You will need to take a UK/US/Home spec Xbox, or buy one from Hong Kong to play ESO. Local China spec Xbox's will only connect to the local intranet. I originally brought mine over from the UK, but I bought a new X from Hong Kong last year and ESO runs on it fine.
As a side note, Facebook, Twitter, YouTube, Whatsapp and all Google software products are banned here so you will also need a VPN to access any of those.
My gamertag is The China Man51 if you want to add me to talk more.