China has not banned cryptocurrency. They just banned ICO and exchanges. Peer to Peer trading is still available and actually quite popular in China. I don't think there is an effective way for government to ban bitcoin anyway.
I think the reason why the Government is against bitcoin is about "TAX/TAXES". Why? Because, bitcoin has no tax. So, the government is against about it because they can't get money (Tax) form bitcoin. Also, government
About China, I think your right. They can't just banned bitcoin because it work in internet. As long as there are internet connection, bitcoin can't be banned. I think he government will find more ways to get bitcoin to control it also, because government controls every transactions that involves money.