well by co exist do they mean china can use it for legitimate trades with merchants or do they mean they've bought enough now and want a quick pump before banning it again.
Chinese leaders are smart, but without respect for human rights.
They knew that BTC is a good thing because it is an alternative to their fiat currency, if a megacrash happens (like Greenspan once said, lets not destroy experiments with alternate currency, we never know when we need them)
Also they have most mining capacity and hardware manufacturers in their country; it is like a natural resource to them.
So sure, they manipulated price down, invested into BTC, and now they say, hey, BTC is not our enemy ....
