What China is doing doesn't fit the definition of FUD. FUD is trying to bring the price down by talking negatively about it, but China is just outright banning it from the country. They don't give a damn if that makes the price go up or down because they only care about getting it out of the country because they can't have anything challenge the digital yuan. Since their actions are based on getting rid of it instead of affecting the price, it's not correct to call it FUD, which is a grossly overused term by this community as it is.
But it's still categorize as FUD if the news is not true and just make fear to the investors.
We heard about china banning bitcoins multiple times for the past years, but they don't really ban it actually. Recently i just saw the tweets from justin sun said china loves bitcoin and the news of bitcoin banning in china is wrong, so this means the media are spreading the FUD.
If china is really ban bitcoin then it's not FUD, but the real thing happened there.