My taught On the Chinese people? It will make cryptocurrencies like Bitcoin illegal. Anyone who uses crypto becomes a criminal. I don't actually think their laws will get rid of crypto. Instead, people who don't like being under the harsh thumb of the CCP will utilize privacy cryptos like Monero. I won't be surprised if new internet and cryptocurrency privacy is developed because of the Chinese. There is now a market of potentially 1 billion people who want internet and monetary secrecy. Even if only 1 percent of the Chinese people want/need privacy crypto and internet that's a market of 10 million users! The CCP has planted the seeds of the rebellion that will throw them out of power and they don't even know it.
I believe the same as you do, I think this is going to eventually come back to haunt them, they are creating with their actions the perfect market for cryptocurrencies that are specialized in privacy and they are also giving the people that are holding bitcoin a reason to move out of their country and never comeback as they do not want to deal with their oppressive regime anymore, people want freedom and while we understand that some kind of limit to those freedoms is necessary to live in a civilized society at the same time they are not very good at tolerating instances in which their freedoms are being restricted and there is not a good reason for it.