I don't think China's going to accept Bitcoin as a currency because China is a large, strong country, and we know China can always make its own technology. Although the Chinese president stated yesterday that endorsing blockchain does not mean that the Chinese government will legalise bitcoin. The Chinese government is not going to like bitcoin decentralised and anonymous. I heard that China is going to make its own crypto project, so I think this could blow up in the future.
their strength is to always be able to create a controlled system in a sustainable way, as well as to take advantage of something they don't like.
Even though there are many illegal investments in circulation, they can still prevent it from growing bigger, what they will do now with CBDC will bring big changes in the crypto world. If they finally legalize bitcoin, I'm sure they must make sure to take most of the outstanding bitcoin in their own way in the long run.