The Chinese government's policy is indeed an unexpected advertisement for decentralized exchanges. But I have a puzzle: how to exchange Fiat into cryptocurrency? The important role of centralized exchanges at present is to undertake the exchange of fiat and cryptocurrency.
It's cool when you view it this way while they indicated that all cryptocurrency transaction is illegal. China is communist country which far more different on other country regarding implementing the law. Sure this is the best way to view when you are outside China but if you are a resident there. You will obviously fear about doing activity against the law because you will surely busted the way how they monitor all there citizen.
Let's just remove China out of the crypto picture and move on. Besides we are still moving forward know the fact that they imposed this kind of law few years ago tho.