China is a big nation and is a biggest manufacturers of ASIC and many biggest bitcoin mining farms are in China. People are fearful of FUD from China because they think if China cracks down mining there, it would be the end of Bitcoin network, that is not certainly.
They will be slowly toppled by India, remember that Apple has already moved some of their factories in India and their birth control policies are now backfiring, I think that their market dominance in production, demand and supply isn't going to last that long.
China is hurting itself, and I love watching it happen in real time. What they are doing to crypto is not a huge deal because that is just a small portion of what they are earning, but this is the nation that made TRILLIONS of dollars from manufacturing and because they decided that they can do whatever they want and no nation would ever bother to change it, even the capitalists are getting to the end of it.
European nation or USA having unemployment trouble now? Watch in a decade when major places move most of their places from China to other places meanwhile having more and more local manufacturing for smaller stuff and smaller companies, it is going to be so much so that China will beg to manufacture stuff for the "west" and that will keep going until they stop being a bad nation and commit a genocide (which they are doing now) and in order to get those companies back they will have to tone down all the bad stuff they are doing.