I was a bit confused, but I think your reply perfectly explains what's going on.
But my question is, what does the bill actually contain that makes it seem like it is going to favour Trump?
Like he has said (from the video), he has been in crypto even before this second term in office.
His vision to make the US the leading crypto country was made known during his campaign, and I could remember that. So, it's not as if he just woke up one morning and decided to go invest in crypto. Although, I'm still very much interested in reading the bill.
That aside, why did he have to include China when being asked the question. China's stance on crypto has been very unclear to me. AFAIK, you can own but can't trade, so I don't think there was a competition from that angle all along. The US would have still led, but the Trump factor was an advantage.
But incase there is more to this story than this, i will be glad to do a follow up.
It's not just black and white with China. One one hand Trump likes to scare people with the China angle and it looks like he's using it too much. On the other, China has been spying on the US for decades and stealing whatever plans they could get their hands on. Huawei was banned for a reason. China makes it look like bitcoin is banned there, but it's not in Hong Kong and it's been often said that this is where China does its experiments. If they need a narrative that, for instance, they don't do business with this or that company, they will do it through Hong Kong.
If bitcoin is allowed in Hong Kong, the Party doesn't want to admit it, but wants to make money from it, just not openly. I guess they're afraid of backlash if it somehow fails. They don't want to be called irresponsible for allowing bitcoin and then some people get hacked or something and it makes less people trust in their ability to lead the country. China probably already owns bitcoin through shell companies, just like Russia.