I guess China has influence on crypto merely because of its population, like India does. Although ICOs are banned there, this doesn't stop people from investing in projects around the globe. Right now China seems to be manipulating blockchain : first declaring it illegal and now issuing statements endorsing Ethereum and recognising the value of blockchain. Probably they want to leverage crypto to achieve heir own goals, perhaps modify it somehow
(i.e. come up with their own national blockchain that might not be decentralised).