From what I read recently, China created a government-backed fund to finance startups.
https://www.forbes.com/sites/ralphjennings/2018/04/26/china-is-tightening-its-grip-on-cryptocurrency-to-promote-rather-than-purge-it/#3ab4f6aa5482

But in general the attitude towards crypto remains restrictive in China, imho.
And I think that one of the most important reasons is the continuing fight against capital outflow. China experienced enormous flight of capital in 2016. Capital outflow reached $725bln that year. The situation became better in 2017 but the amount of "shadow capital flight" has been on the same level since 2015. And cryptocurrencies are among the instruments used to avoid capital controls.
I suppose that government will continue its battle against capital outflow and the crypto will remain uder pressure.