“I believe China simply wants to ‘reboot’ the crypto industry into one that they have oversight on, the same approach they took with the Internet.”

This would be a good thing if it would be better then Blockchain i would go with it.

“Bitcoin mining wastes a lot of electricity,”

Well in fact China is getting his polution levels lower each day now which is a good thing. Maybe that's some reason why they want to ban mining to prevent some "additional polution".