Following Lipa's performance on Wednesday night (September 12), attendees posted videos on social media, which appeared to show security guards forcibly removing a number of fans.
Dua Lipa, who was reportedly left visibly upset by the situation, is said to have told the crowd: "I want us all to dance".
'I want us all to sing, I want us all to just have a really good time.
Lipa posted a statement on Instagram after the controversy at her Shanghai show.
"I will stand by you for all your love and beliefs", Dua Lipa wrote, "and I am proud and grateful that you felt safe enough to show your pride at my show".
According to BBC, homosexuality isn't illegal in China but there seems to be a silent movement that wants to silence the community.
Netizens have also pointed out inconsistencies in venue regulations, as Guangzhou concertgoers claimed they were able to stand without issue during the previous night's show.
Dua Lipa, in addition to riding high on a wave of pop-song guest spots in 2018, is now making her way around the world on The Self-Titled Tour.
'As a lover of western pop music and culture, this incident has broken my heart, ' she said, adding that she hoped the event wouldn't bring negative impact on Dua Lipa's music future in China. "I would love for these last few songs for us to really, really enjoy ourselves - how about that?" I was horrified by what happened and I send love to all my fans involved.
Another concert-goer, who wished to stay anonymous in fear of repercussions, told MailOnline that she saw one fan, a female, being kicked out by several security guards. Fans are also seen protesting at the actions.