Chinese governments has taking several drastic actions against bitcoin in the past, therefore, I don't see any new things if they ban bitcoin mining. Remember that this will only affect the mining companies or firms in China and not any other countries.
no need for the Chinese government to be considered fools. The fact is that they also know how to pursue a policy regarding everything that can benefit China. In economic terms. I see a completely different situation, which is forgotten by the Chinese government. Most likely, they can fully monopolize the Bitcoin mining business, since analysts say it is about 70% of all miners located in China.