The China's digital Yuan will target US Dollar, not Bitcoin. As we know that US DOllar is now the first fiat that give the biggest impact on the world. USD influence is very high in the countries currency so far. In this case, although this is a digital currency, the target is still the same that is to rival USD and to chip away the hegemony of the USD.
As we can think here, Bitcoin is very popular and it also gives influence to the digital asset. however, the most influencing currency in this world is not BTC, which is US Dollar. Not all people in the world also know and use BTC. but, USD is always used as a conversion for many activities and also assets. The power of the dollar so far cannot be broken. However, it doesn't mean that BTC is not considered as the rival. Who knows that someday, the CHina digital Yuan also targets BTC?
here is also what experts said about the target of digital yuan is US dollar, not Bitcoin:
https://cointelegraph.com/news/expert-chinas-digital-yuan-will-target-the-dollar-not-bitcoinChina is trying hard though and I wouldn't be surprise if the Chinese exchanges will backed this digital yuan such as binance. Now I can't think of a reason why they won;t succeed to this attempt unless we can see US has done something to compete this digital yuan either.
The articles says it all: “DCEP can achieve real-time collection of data related to money creation, bookkeeping, etc, providing useful reference for the provision of money and the implementation of monetary policies.”
which these Swift, CHIPS, Fedwire and things of past already if this digital yuan is gonna go live.