Actually, the Chinese government was concerned that some Chinese people might get wealthy without being in their loyalty network, under control. They want to choke off bitcoin in order to keep the Chinese people as slaves.
But....The Chinese have the resources (whether it be in Gold or USD) to buy vast amounts of BTC and have some measure of control... considering the "semi-pro" US response to BTC i would have thought that they would try to buy it up in order to control... as they are doing with gold reserves.... this would offer them some future-proofing just in case.....