Chinese crypto-currency will fall as it will be controlled by a centralized government and will result in more issue between the chinese people and the government as the establishment want to implement supremacy rather than equality
This depends on how the population of China will react to this. Many of them don't know about cryptocurrencies and for them this will seem like something new that is helpful for their economy so their crypto might survive for a while at least in China. For the rest of the world this is going to be a dead, shitty coin and nothing more than a copy of bitcoin.