The woman pictured here is the formerly male Liu Xuanyi from Guangxi. She is wearing a dress and top made from condoms. As the China Daily puts it, the purpose of the condom clothing was to “arouse AIDS awareness” for World AIDS day on December 4.
For more information about and photos of Ms Liu, see Netease (in Chinese), Shanghaiist, and the China Daily (source of image).
Chinese media has enjoyed covering the transsexual scene at least since 2003. If you are interested in this subject, you can search for all the articles on Danwei that mention transsexuals. There are quite a few.
At one point in 2003, there was so much media coverage of transsexuals in China that Danwei started a special section for it — click here to see what the site looked like back then (external link to Wayback Machine).