It's still not clear what the Chinese government wants to do with the blockchain industry. All is only rumors and extrapolations nothing is official.
My guess is that China is trying to control tax evasion and money laundering and all sorts of money related illegal activities in their country. On the other hand, they want to adapt this new technology to the Chinese government needs. They want a highly secure and transparent technology to improve the healthcare, education and other governmental services so there is still an opportunity to invest and profit.
Nevertheless, we should wait for a clearer situation