I suspect that any day China is going to declare its support for crypto and lift its ban even though we all know its working on blockchain projects in the background. It just means we have to wait longer for the price to go up I guess.
China is aiming to control every transaction of its residents. All electronic identity in concentrated in messengers like WeChat and other similar apps, the government is testing an electronic social rating.
They are definitely not going to issue any kind of free money. The only possible thing is that they issue some kind of governmental stablecoin and remain controll over it in the hands of the government.