This is all a bit off base.

A) There aren't many sellers accepting bitcoin in China yet -- that part is just not true. We're trying to change that, but don't get sucked into believing BTC is everywhere (yet).

B) The government doesn't care about Bitcoin too much yet -- the one thing they do care about above all else is "social stability" (read: "keeping power"). Anything that potentially destabilises that is a problem. A huge gold-rush like move to BTC would potentially be very damaging if lots of people lost their shirts in a crash. As such, the government is already trying to damp the flames a little. Recent CCTV and radio reports advise people not to rush and buy BTC, that it is unstable and dangerous.

The best thing that can happen now is a long consolidation. This constant push upward, potentially through 2k, will cause a spectacular crash with some potentially very negative consequences for all of us. We all need a bit of a breather.