I figured its just a ploy of the chinese government, especially since Japan legalised bitcoin. They dont want to walk the same path...
But eventually they will find out, that any brute force against bitcoin, will only implode upon them, as it will shoot up bitcoin price because of chinese people black market trading it... No matter what the chinese government does, they cant stop the chinese people from using bitcoin, it will just be more costly to get it in china, but it will always be there!