It is still referred as they "may" try to block all the bitcoin transaction. They haven't started it yet so I see no reason to worry as of now. Also the way Chinese government is trying to crack down the exchanges and fundraising activities, I believe most of the Chinese bitcoin users have moved to VPN and TOR services. So it will be a little difficult for the government to block the transactions.
To be fair, the government is working tirelessly to crack down on VPN services. They got Apple to remove all VPN apps from the app store. I recall hearing that they expected to eliminate VPN services from China by next year sometime. That, of course, is impossible -- new VPNs can always spring up -- but if it's a game of cat-and-mouse, then it could make things very difficult for users and drive people away from investing. There is also the question of latency for miners...