Is it possible to make generalizations about the people of China based on where they live? Explain.

This is true and at the same time it isn't. The thing is, we can make different deductions about the people who live in China based on their geographic location, but the extent to which this generalization can be made is rather limited.

Yes we can

Generalization : a general statement made from a specific case

Specific case : China is a communist country

General Statement : All of the people that live in China don't have a freedom to choose their occupation

Explanation : in communist country, the government is the one that choose the jobs for the people, so we can make that general statement