China govt/private entities have a strong interest in blockchain technology and its development is encouraged. Cryptocurrencies are directly banned, as are all exchanges. Among the reasons for the ban include way way too many scam ICOs, no regulatory framework, maintaining control over cross-border currency movements.

I don't know if CCs will be "unbanned" in the future but you can guess that there is some sort of regulatory framework being built behind the scenes to better formalize the industry. The P2P industry experience has also not been a great precursor for crypto and likely makes everyone act even more conservatively towards crypto.