China has always imposed sanctions on bitcoin and China has always called it a conspiracy. China believes that if the world became rich because of bitcoin, no country would need China.
That's one of the worst conspiracy I heard so far about China banning crypto.
On the other hand, members of the Chinese Communist Party are very interested in bitcoin. I don't think that China will ever call the bitcoin a legal currency, but a time will surely come when China will have to trade by buying bitcoins from the world.
This is contradictory to what they wanted. They already have the digital Yuan, and they want Yuan to replace the US dollar. So if they trade with Bitcoin, what will happen to their digital Yuan?
Because how long can China trust banks? As the banks may start printing a lot of money which will increase the inflation and people will be forced to move to Dogecoin. If this happens then everyone will be forced to accepting cryptocurrency and The inflation of the dollar will be as much as the amount of tokens like Shiba Inu.
Banks printing has nothing to do with China. And we don't know if they trust banks or not, but for sure their banks are controlled by their government.