Aren't China trying to eliminate competition for their Digital Yuan, that's why they crack down on mining in the country because they want to make sure that Digital Yuan will do good? I don't get how they don't say that they want to do it because they want to reduce carbon contribution, most articles don't even mention it.
I also think that is the reason why China is trying to eliminate Bitcoin. The Chinese government fears that their digital yuan will be ignored if Bitcoin market is left unchecked because people tends to flock in to Bitcoin economy that patronage their Digital Yuan. With this fear, China since they have the authority in their jurisdiction put pressure to both cryptocurrency holders and supporters in order for them to divert their attention to the Gov't Digital Yuan.