Its more likely that they make their own currency that will circulate in the entire China rather than adopt bitcoin as their official cryptocurrency.
you're right:
Quote from: https://cointelegraph.com/news/chinas-central-bank-prioritizes-development-of-digital-currency
PBoC suggested that it should accelerate the research and development of its digital currency.
Source: https://cointelegraph.com/news/chinas-central-bank-prioritizes-development-of-digital-currency
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The Chinese government will not accept cryptos easily because they want to have control over their people and they prioritize things done in their own country. Imagine if satoshi was Chinese? the Chinese government would probably accept bitcoin, but the US government would be creating barriers against bitcoin