She was accused of donning a politically charged dress which was embellished with sunflowers during her performance in Taipei, the capital of Taiwan.
"For every artist who wants to perform in China, officials comb through their social media and press reports to see if they have done anything deemed to be offensive to the country", the source told Page Six.
The model wrote, "I'm so bummed I won't be able to make it to China this year".
The sunflower had been adopted the year before by anti-China protesters in Taiwan, the Post said.
Representatives for Perry and Victoria's Secret didn't immediately respond to INSIDER's request for comment regarding this situation.
She later apologized on her official Weibo account, but her fans pointed out that the message was not enough, since people outside of China could not see it.
It has, however, been revealed who will replace Perry - none other than One Direction band member turned actor Harry Styles.
From what most publications and commenters on social media say, Hadid has also been denied a visa to the country because of the racist video of hers that had surfaced in September.
Ed Razek, executive producer of the Victoria's Secret Fashion Show and chief creative officer at Victoria's Secret, told People: 'We started booking our musical guests months ago when Harry Styles, worldwide superstar, signed on.
Some of Victoria's Secret's biggest names have been denied entry to China, in addition to lesser-known models, such as Julia Belyakova, Kate Grigorieva and Irina Sharipova. Last year, Angel Elsa Hosk notably wore a dragon on the runway, which many thought turned Chinese culture into a literal costume.