It seems like the last ChinaFUD (of a BTC total ban + firewalling) might be exaggerated, and that's what caused this dump imho. In any case I doubt that it can be very effective.
If they try for real it will be a good test of btc "anti-censorshipness". Make your bets.

edit:
https://news.bitcoin.com/chinese-investors-to-trade-bitcoin-over-the-counter-via-telegram/