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.
They're going to have their work cut out to convince the rest of the world that Chinese currency is the way forward. You can offload dollars on anyone anywhere in the world. If you try buying yourself a slave in Mali with CNY you'll probably end up a slave yourself.
Chinese money can grow bigger than USD purely on their own internal market and direct dealings abroad. Beyond that you'd have to change an attitude that's been entrenched for a long, long time.