This would automatically shift demand to digital gold, aka Bitcoin. If that happens, you can expect China to take action restricting purchases of Bitcoin in some time. So a short and quick raise in bitcoin's price would be followed by a dump. 
There were rumors that India will regulate its citizen's gold savings. India is one of the biggest importer of gold. So, it will be true people may start switch over to digital gold for many reasons. China's policies are usually for long term, we can not expect immediate impacts.