It’s definitely possible and knowing China, I know they will do everything to get it done especially if it is the way to get something they want (and they want a lot of things). I can see China doing this for political gain, how? That I am not sure but one thing’s for sure if China were to take control of 50% of bitcoin investors might lose some confidence on the coin.
China has always wanted that, but they couldn't do it because there were so many obstacles. They have been doing that for several years, but until now they still haven't been able to do it. That means they can't, and they aren't capable.
With the number of people these days who are interested in Bitcoin, especially now that there are other countries and institutional investors who are accumulating it, for sure the country of China will have a hard time.