There is a high probability that China will crank up the printing presses. Poor(er) Chinese will either use Bitcoin as a hedge on inflation, use more traditional precious metals, or they will be too broke to hedge at all. Chinese capital in invested in all the wrong places. This was the inevitable consequence of their neo-mercantilist foreign trade policy, as it was for Japan and every other country that tried it.
You make that sound like a bad thing. In fact it was an amazingly good thing. It worked really well, and accomplished what it was intended to accomplish. Now that game is over and it's time for the next game. Whether they can manage the transition or not is unproven. Whether they can play the next game as well as they played the previous game is unproven. But they definitely won the last round.
It's the evolution of things not just China but the whole world has to wean off fiat, our very survival depends on it.