China relies on the inflationary currency and bitcoin is deflationary so it is incompatible with each other.
There is no country that 'relies' on BTC, they all use their fiat and the U.S. dollar for international trade, even if it was true that China wants to legalize BTC, i guess it simply means that want to lift any kind of ban they have on BTC, including the ban on BTC mining, you wouldn't think for one second that it meant they wanted to make BTC a legal tender, obviously that can never happen in China.