China already holds a significant amount of Bitcoin, so I don't think they would buy more if they're planning to dump it. In my opinion, the best option for them would be to buy gold. Well, you can't really blame China for this; it was the US that started the economic war by trying to raise tariffs. Now, China is just responding and trying to show the US that they can't be bullied, they’re ready to fight back.
China has been very wise in this matter and if they sell Bitcoin now, they are in a lot of profit. At this time, the price of Bitcoin has gone up, due to which they will not buy Bitcoin but before that the price of Bitcoin had gone down a lot, which was a good opportunity for China to buy Bitcoin. I have heard that China has bought a lot of gold and because of this, gold has gone up a lot and the United States is also buying a lot of gold, due to which the purchase of gold between the two is being given in a very large amount. This has caused a lot of trouble in the case of both of them due to which the discussion about the tariff is still going on between the two.