I do not know the tittle "china dictating price" is right or wrong but Once the china has a bitcoin ban , The bitcoin market has been down hard and it lost 300$ starting from the time that bitcoin hit over 1,100$. Therefore I think china is maybe controlling bitcoin price
If china were to ban bitcoin then a hit in the price will follow but there is the possibility the price will then suffer a spike if the investors decide to not care, or another crypto may end up rising in price spectacularly like those which offers anonymity as part of their design.