Even if they make Yuan digital it can’t still force other nation to use it, China is already digitalized and make most of their transactions cashless so this is not new to them. Well, I also heard about the news of Digital USD which can still compete with Yuan so this is not the end of the fight i think since big countries will also follow the growing technology. If bitcoin remains decentralized, then Yuan can’t still change the fact that more people now wants to control their own money and that’s what bitcoin provides to many.
Talking about money means talking about greasing the economy both for fiat money and digital money. Digital Yuan may be mighty in China but China is part of the global economy so it must follow the rules of the global world.
I consider this digital Yuan publishing as part of China's grand plan for the mastery of renewable energy sources as a support for technology in the future. China's move to publish digital Yuan will stimulate a global reaction to rival China. This massive reaction will accelerate China in achieving its national interest in energy self-sufficiency and create a global dependence on renewable energy sources created by China.