yeep, china is only welcome on the blockchain. but remains controversial with decentralized cryptocurrencies. because bitcoin and friends can't be controlled. so China considers it illegal.
Bitcoin technology (blockchain) is indeed needed, so the Chinese government is planning to make their currency using the blockchain, and this is one way to block bitcoin and make changes to their transaction systems.
Chinese are very smart in controlling outflow of currency n info from their country. They have banned Google, Facebook and other tech giants from operating in there country. How can they allow BTC to operate freely in there country?