Makes sense. But from my view here in the West, China is very eager to appear mainstream especially when it comes to finance and capitalism. Therefore, if Bitcoin were to get mainstream acceptance in Europe and the US, I could see a world where China didn't try to ban bitcoin. Bitcoin isn't going to threaten a communist Chinese government at anytime in the future anyway.
More or less agreed. However if bitcoin present challange to authority (not to actual fiscal power, but to the image of authority, like that "Chinese government can maintain the stability of our own currency"), they treat it differently.