The battle of bitcoin is against the world leaders at large. It is not only against China. Till bitcoin begins to fight back, China will loose nothing. Yes, it is also the Chinese adage that says "an enemy of your enemy is your friend". This means that if China does what OP suggested, all other enemies of bitcoin will unit with China to follow sooth.
But you have nothing to bother about. The blockchain technology is technically synonymous to bitcoin. This technology is very strong and reliable beyond China destruction. Since it's the technology on which btc foundation is laid, you expect nothing than adoption by all.