What do you think countries have to lose by making this choice?
In general there may not be, that's why they totally banned cryptocurrencies in my opinion. But only they know.
I know the crypto industry can make a country benefit from a number of things, taxes maybe one of them. In addition, crypto can also improve the community's economy, especially users where their success in making profits on trade and investment has made them independent of their main income in the real world.
China doesn't like anything they can't control, that includes bitcoin. So it is safe for us to assume that they have nothing to lose as long as they have full control over their own country even if they don't give their citizens the freedom to own bitcoin, trade them or mine them.