In the long run, he is beneficial to the Bitcoin market because he can break China's monopoly on Bitcoin. Although there are short-term fluctuations and declines, this will prompt countries to adjust the Bitcoin ecosystem, which is conducive to the long-term stability of the Bitcoin market.
It will probably take a really long time given how large bitcoin activity in China is. I agree that it will be beneficial but I am sure that people are still going to panic over this fluctuations.