This gap between Chinese and other exchanges should close out pretty soon, especially if they realize that the news is by no means confirmed. It is all speculation right now, and Chinese government hasn't come out and sided with anyone yet.

Currently though, BTC is selling at $3980 when the price is $4340 on Bitfinex.

I guess people want to get their coins out of these Chinese exchanges as soon as possible, that could be causing it. But as i said - if the news turned out to be false then it'll have the adverse effect and potentially lead to a huge short squeeze and pump, with China leading the way.