China is a communist country that has everything in the control of the government and their currency is traded within the country. I believe the digital yuan was created in a bid to always have relevance in the digital world.
Locally, this may do well for government since it will strengthen their control over the people but I do not see it doing well internationally. This is because I do believe anyone outside would want to use a digital money that is controlled by the government. That would defeat the very purpose of bitcoin and the Blockchain technology.