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.
I disagree. China is the N1 maker of mining equipment, China is in the top 3 BTC mining countries, China has areas with very cheap electricity.
All this means they get USD when selling the mining gear, (as the people got rich during the Gold Rush by selling shovels, not by digging themselves). But on top of that they also are one of the top miners (e.g. BTC holders). Binance is Chinese. From all this I can conclude that crypto is a huge income for China.
And when something gives the government a huge income, but at the same time it gives financial freedom to your citizens, you can:
1. Put taxes on anything BTC related
2. Try to copy the technology and implement it yourself
3. Monitor and control as much as possible any huge BTC movements and track China BTC Richlist
4. you add here
5. you add here