Chinese government likes bitcoin for the same reasons it likes precious metals. They want to bring wealth into the country.
And China will promote anything tha hurts us dollars dominance over the world.
If I had to bet, China gov will support Bitcoin as long as it helps bring down dollar dominance and then turn strongly against it if that ever happens.
They have never turned against gold. All that requires, I think, is for the top leaders to really "get" it, to understand that it's as neutral as gold which is not the product of some western conspiracies(the prevailing narrative on Chinese social network right now, what a bunch of brainwashed idiots) against CCP and even better, with China's nearly unrivalled mining potential they can just play by the rule and reap the benefits.
Bear in mind that China's vast foreign reserves are largely denominated in US dollars. They're likely not as keen as you think to see them drop in value.
Yes but it's a PITA any they are trying to do everything to diversify, that's why they have proposed to use IMF's special drawing right as a world reserve currency in 2009.