Would they need BTC? With 1.3 billion potential users wouldn't that be enough?
There is vast difference between coin created by government and bitcoin, all government issued coin (if they will issue one in future) will be centralized and will be in full control of the government which is just like virtual bank balance we have right now so pretty much useless.
Bitcoin is decentralized, anonymous, limited and self sustaining that's why it is most valuable coin out there.
I didn't mean the Chinese government, I meant the Chinese miners. It would still be decentralised, just largely around China. Has there been any attempts?