Spot on. China only cares about the larger number in the end. Regardless of how paranoid the Chinese government is, they aren't stupid. They very well know what to do in order to keep the major part of their people in control.

The smaller part of the people that they don't manage to control, is considered to be collateral damage, and something they wouldn't be able to control anyway, so there is nothing lost for them in the end.

I also agree with tee-rex that Bitcoin isn't actually something you move outside a country, but the main thing is that it's more the fact that not Bitcoin is the problem here, but still fiat is.

If you wire money to an exchange, it will likely end up in a foreign country, and if people massively buy themselves into crypto, exchanges will move even more of their capital away from the economy. I think that's the main concern.

Not only regular individuals want to store their capital in other countries, but businesses as well.