Let's look it in this way, creating and issuing your own currency is not something many countries will allow you to do. If you try to create one you may end up in prison. The situation is different with cryptocurrencies as with it being peer-to-peer you can't kill it. Some country will allow it, some won't but ultimetly at the end of the day it's nearly imposbilbe to shut down. So China is doing what it has to do, it is looking at the market closly and trying to regulate some aspect of it, the one they have the control of. Cryptocurrencies are in some grey area in most countries and China is simply doing things, the leaders of country see as things that are done to protect some part. USA is also looking into regulating it, but so far they don't have that "unfriendly policy" but from my understanding both China and USA don't like the fact how most ICOs are done and the way they collect money.