This sounds very strange and improbable. In some ways, this is more politics than crypto news. I think China will certainly continue to struggle in the crypto market, but not in this form.
Most likely, the Chinese government will start trying to supplant bitcoin by popularizing its digitized yuan. Therefore, I do not think that China will fight bitcoin by administrative methods in the near future. But they will definitely try to interest the inhabitants of their country with their digitized yuan. I also think it will be a private success. In any case, in the first period.