#1 majority hashpower is in China. Chinese mines can be controlled or shut down by the People's Bank or the government.
If the chinese can produce something domestically, they do.
Why "import" BTCs for dollars, from foreign miners, when they can produce them locally?
If Chinese production of BTCs can satisfy local BTC hunger (prevents USD outflows) or even be used for "export" (USD inflows), then it's a "profitable" activity for their economy.
Having most of the hashpower in one country, particularly one controlled by a totalitarian government, is almost as bad as having most of the hashpower in one pool. What if the Commies decide that Bitcoin is a threat to their own new digital currency that they are looking into creating? Protectionism isn't exactly unknown to them.
China is intentionally low profile in terms of international "incidents". They don't want to draw too much negative attention.
Even if the western elite hate bitcoin with a passion, they will (hypocritically) crucify the chinese for such an attempt. They'll make it top news that "China is panicking and is now after Bitcoin and bitcoiners". The chinese have learned the western modus operandi, they aren't idiots. They have an attitude of "maintain a low profile and steady as she goes" particularly for things related to things which aren't exclusively domestic and/or have international reach. I feel the western elite tried to exploit them with the hearn article, by putting them on the spotlight, presenting them as some kind of "problem" so that they can then try to mitigate this "perception" and thus make them react like "we are not the problem, we'll increase blocksize" to preserve their low profile. Thus they were "played" to start getting out and supporting the "Classic" in order to ...prove that "we aren't the problem, we are easy-going miners, we only want peace and stability, all these stuff that were written about us are false"...
The western elite like to play chess and play everyone like a pawn... what is the chinese miner attribute? Low profile, we don't want any problems, we do what we do and don't really bother with anyone... so with a little bit of upsetting the status quo after the Hearn article => they are placed into the spotlight as a "problem" => this activates their instict to go back to low profile and say "
yeah yeah 2mb it is, just leave us alone so we can go back to low profile mode where nobody notices us". However by doing that they are shooting themselves on the foot since forking bitcoin is destructive both for them and bitcoin.