They are just enforcing rules to control how and how much money are entering into crypto.
You won't get arrested for having an app wallet with 10 bitcoins on you while traveling around China. Nor if you decide to send them to some random guy.
When converting from and into fiat without proper papers, that's when the fun begins.
I thought things were much worse... if it's really true, then in China not everything is so hopeless)) Well, as we can see - China's bans don't prevent the growth of bitcoin