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.
If you are only talking about China then dont worry they are only making their own market and this all drama was only created to show the world that China have some strong hands in this business. So, what China, every other country will be going to accept it and bright is the future.
i agree with you guys. in my point of view China's govvenment dosen't want Bitcoin trading out of their control. there isn't any statement that said bitcoin is illegal.