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 hear 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 cause 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.
It doesn’t really make sense for them to keep buying Bitcoin anymore. They already have significant holdings, and they’re not aiming to become the Bitcoin capital of the world anyway. What they have is enough to keep them in the top 10, maybe other countries will catch up, but right now they’re sitting at number 2, so they are already in a strong position.
Why buy more if they can just keep accumulating through Bitcoin seizures?
As for gold, that one’s more understandable. It’s still the most stable asset in the world. If they want to lead globally in terms of economy, being in the top 3 gold holders makes sense. China is slowly catching up to the U.S. in that ranking, and honestly, I wouldn’t be surprised if they take the lead soon.
Let’s just hope the U.S. doesn’t make bad decisions, like going to war out of fear of being surpassed by China.