It is really great to see that China is ready to develop their own digital currency. Also, I think their dependence on US dollars can reduce or stop if their government will fully back the digital yuan if not, it will still be like other cryptocurrencies. Also, knowing that the government of any country likes control, it also means that, there might be every tendency they will fully control the digital yuan, and in as much as they have succeeded or will succeed in creating their own crypto there might still be no difference between the digital yuan and their fiat.
Nevertheless, it is a good news for the crypto space and if fully actualized, might cause other countries to wake up to the call of adopting crypto.