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.
yes, china does not banned bitcoin, just banned ico. I think that bitcoin is still allowed. as you say, the ico ban is to make bitcoin better there.
Yes this could be one of the reason beacuse through ICO many would raise the moeby and then it may turn out to be a scam this causing a lot of grievances from all the investors as their money is lost . This to save the money of people I think this step is being taken .