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.
China always wants to be at the forefront of everything, they also maintain a centralized system, because it can be controlled. therefore the trade war does not seem to make China tremble because their products have controlled most of the world market