Actually, China's government seems to be against cryptocurrencies with plans to launch its own currency with centralised control, but due to technology they may be enforcing some laws to regulate such cryptocurrencies. Since most btc mining is centralised in China, it will be used there forever. The other side trade war between the US and China could increase the use of crypto business in these nations.
Chinese government doesn't want people to use private and decentralized currency, but at the same time doesn't want to give away the advantaeg to the US. I believe they'll continue to push CBDC on people but they haven't really decided what to make of crypto yet