Communism and decentralization have never and never will be able to work together, and many people seem to forget that when they talk about BTC and China.
In today's world no government is willing to give away control of country financial system. It's important to understand that government's are mostly against decentralized financial systems like bitcoin, they have acceptable behaviour towards cryptocurrencies that are not decentralized or which can be controlled by the government. You are right in saying that government's of China, USA and rest of world are not stupid that they are not able to figure out there interest in decentralized bitcoin.