Perhaps, there will be a reversion to offline p2p trading, with either cash or bank transfers as the medium. But with China becoming increasingly cashless, having Wechat actively trying to flag transactions is definitely detrimental to users there.
It's not as bad as it looks. People can still use these payment apps to conduct regular fiat transactions, and as long as this doesn't form a problem, peer to peer trading will be able to grow effortlessly in China, which it did anyway.
It was to be expected though. China has been clear with how it's trying to combat everything related to crypto currencies. It's a sad event for people's freedom, but good thing is that peer to peer trading will gain more importance.
They can't endlessly keep flagging regular fiat transactions because the platform thinks it's related to crypo. People will move away if WeChat or AliPay start to annoy people by freezing funds and whatnot. There's too much at stake for them.