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).
Cannot they use BTC-e? It requires no identification, and is about to become the world's second largest exchange by volume (look at the daily charts
here). Of course, they would need to obtain dollars or euros first, but that is not very difficult.