Bitcoin in China has been relegated to the status of QQ Coins.
This is not correct - you *can* sell your BTC for RMB on btcchina and other exchanges (they do now insist on ID which is no different to other major exchanges).
You *cannot* sell QQ coins for RMB (via any equivalent to an exchange) so that is a *huge* difference.
The latest statements basically restrict BTC to being more like a "stock" (which you can speculate on) than to being the equivalent of QQ coins (which function more like "reward points" that you can exchange for "virtual goods").