Bitcoin will survive in China, that is sure. All this happenings are actualy try to regulate the Bitcoin not to destroy it. I think China is still interested in Bitcoin and they are not so sensless to go into some destroying campaign against Bitcoin. All this will be in their favour at the end but on long term it will not harm Bitcoin either.
and this is really just a matter of time, until finally the bitcoin is allowed back .. because the Chinese government wants them to benefit from every transaction that takes place .. and this will be re-legitized when the Chinese government has got every advantage of bitcoin users. maybe this will re-pump the bitcoin price when china re-operate against the bitcoin payment system