China will be the first country to crack down on Bitcoin.
It's trivial for them to block Bitcoin communications over their network, they have the most advanced proxy filtering systems in the world.
Instead they could just fork Bitcoin to make Peoplecoin: not proof-of-work, not proof-of-stake, but proof-of-compliance-with-the-state ;-)
On a more serious note, I think Bitcoin developments in China will be very interesting to follow. And that Western culture dismisses too much what China does better than the rest of the world because of the State Control Freak / People's Party thing.