I don't think the average Chinese consumers use Bitcoin to purchase goods or services in China, almost the whole amount of Bitcoin in circulation there is controlled by the miners and the exchanges. The bad thing is that the Chinese government can control the Chinese miners and exchanges in the country essentially gaining indirect control of the whole Bitcoin network in China and most importantly could exert a 51% attack if they gather all the hashing power in one big cluster of mining farms. Some food for thought I guess.