The thriller, which follows gangster-related activities in Boston, shows a sale of secret technologies to Chinese villains. The Chinese government did not like how their people were portrayed in the film.
Chinese authorities only allow about 20 foreign films into their country each year, and several Hollywood movies are routinely rejected.
Last Sunday, Scorsese earned a Golden Globe award for best director for the film. The Departed stars Jack Nicholson, Matt Damon, Leonardo DiCaprio, Mark Wahlberg, Martin Sheen and Alec Baldwin.