There are fairly strict capital controls in China (although they have significantly loosened up in the last few years). To be honest, I don't think bitcoins are even on the radar with China's financial regulators. Total market cap of BTC is 1.5 billions USD, give or take - a drop in the bucket. Yes, there may have been an anti e-currency edict, but if this was issued a few years back, it was likely done at a time when it was much harder for people to do forex and/or move currency out of the country. Also, if I recall correctly, most of the e-currencies before bitcoin's time were also shut down in the western world.

China is very much a cash society (seeing people buy iPhones with cash and being impressed is laughable, I've seen cars purchased in cash, big bundles of cash). I don't think this is barrier to BTC in China. In fact, I think it is very much conducive to BTC in China. Its not just a fiat cash society, people like to hold wealth in gold/silver, jewelry, art, jade, and other precious commodities. If BTC price volatility decreases, so it becomes more of a store of wealth then a wild west investment, I can see BTC be added to that list of cash equivalents.

I think the primary actual use of large volumes of BTC in China at the moment is taking ill gotten money and either storing it safely or moving it offshore without triggering any red flags. This, however, is purely speculation.