I would say that some differentiation might be required here when you talk about the country. In democracies such a differentiation doesn't make as much sense, but as has been mentioned before here, for the Chinese government it is all about control and a freely circulating, unstoppable currency is certainly not what the government would like to be coping with. The Chinese citizens on the other hand might lose to innovative financial systems and markets and in how far that might mean a setback to them remains to be seen.

I still don't believe that the Chinese government isn't bunkering any Bitcoin. I don't believe it. I am quite convinced that they might already be sitting on a significant amount (which didn't cost them a fortune perhaps) and they just don't want that technology to be accessible for their people, but in case it goes above and beyond the moon, they are still participating in any financial benefits deriving from Bitcoin being globally accepted.