What do you think countries have to lose by making this choice?
The only thing that I think China will lose is the opportunity opened by these cryptocurrencies. Like if they totally ban Bitcoin, both trading and mining included, they will only miss the opportunity the Bitcoin market brings, so far I do not think that banning cryptocurrency will affect their economy at all. They had been thriving without cryptocurrency so they do not lose much if they totally banned it. I know that China is keen on implementing its own cryptocurrency thus, they are not missing out on the technology of Blockchain which is the most important factor in cryptocurrency.
China is not against blockchain technology but the cryptocurrency that they don't have any control over.
China has seen the success of bitcoin of which it can try to replicate this success by using it's technology to introduce a centralized cryptocurrency by taking the first step of banning BTC. And knowing China's desire to become the #1 super power in the world, entering the digital currency industry is one way of being #1. So China's move to ban btc is nothing less than depriving its people the financial freedom and also protecting its revenue collection avenues.
I also think the same. I think China believes that they don't lose anything if they ban cryptocurrency while on the other hand if they allow cryptocurrency to flourish in their country, the government will lose control over its citizens' finances.