It could be a problem, though not something I am currently worrying about. When markets are illiquid, yes that prevents some from participating, but it also helps prices go to places they probably shouldn't have gone, including to the upside. A nice irrational pump is always welcome in my book. :)

I'm not sure what to make of the China news. There isn't much reported volume being done on the exchanges I have seen from there, at least not like there used to be, though it is also unclear how much OTC volume they are responsible for... or perhaps some of the volume coming out of China being done on other exchanges... Overall, it would be nice if they would just embrace bitcoin and crypto again.