For the Chinese economy, maybe yes but certainly not for crypto and as I remember crypto users from china are not too large and even for exchanges more from eu and us than china it's just that this might have a "dumping" effect because i think some of the citizens whose cities are exposed to corona will sell assets to survive.
I think the corona virus will affect the crypto usage of china and also the launch of their virtual yuan. It will affect the crypto activities of china because I think they will focuse more on the corona virus issue now. As I heard from the news their are a lot of people in china that is affected by the corona virus and still in quarantine to avoid spreading of the virus.
That is true, the fact that many victims fell due to the Corona virus caused more than a thousand people to be infected and forced to isolate some areas in China. their main focus must of course turn to the handling of the problem of this virus because the current situation is arguably the emergency department. So it is not impossible for them to use their bitcoin assets as a way out.