I reckon the People's Bank of China's does not appear to understand what the cryptospace is if their plan to sideline bitcoin is to issue a restrictive digital form of fiat. It will only be another token pegged to fiat that is similar to USDT. However, more dangerous.
You started this thread almost an year ago and the Chinese bank is yet to come up with their coins but the government always have a strong grip on the citizens and they like to control them and with an oppressive government like them they do not like to give any freedom and the bitcoin market gives them the freedom to trade and it is not surprising that they want to take control over that.