I have seen this same scenario last bull market when bitcoin reach new ATH at aroun 20k$ china create news and FUDs regarding banning or cryptocurrencies and mining on their country but it turns out it is just a way to manipulate the market to store plenty of cryptos then create once again FOMO news.
It's the same this year, China just wants to buy more bitcoin for themselves and at the same time rule the market so that they can get ahead against their rival nations especially USA. I think there's no way that we're going to be worrying about this one, in a way it's much better if we were to see this as an opportunity to buy more bitcoin since the prices are going down.