i have seen "china is banning bitcoin" for years now.
its a bit ridiculous to scream that every couple of months now, and i really don't think most people care about what might happen, because most likely china would just reverse itself as it always does a couple of months down the line
I also see what you say is not wrong, China has done something like this several times but will eventually come back to it. we know, however, China is a very large crypto user and it is not easy to prohibit it unilaterally because there will definitely be an impact that will occur.