The thing is, I think China's CBDC has a lot to play in some of their decisions regarding cryptocurrency, the Chinese government I think only wants a community of digital Yuan users, and no other crypto community in China, the digital Yuan of course will be controlled and manipulated by the Chinese government, but they do not have such privilege with other dex cryptocurrency, that's the more reason why Bitcoin users should not fret about any news China publishes about Bitcoin or crypto.
No government anywhere in the world has such powers to destroy Bitcoin, they could print their Fiat currencies that'll cause inflation and a fall in its value, that is cause they have control. But there is no way government can 'destroy' crypto, one can only destroy what they control.