China benefits from controlling the Bitcoin network to de-anonymize any privacy preserving tech in Bitcoin, they can subtly scoop off fees, or manipulate blocks to pay fractional amounts towards them, or they can shut it down completely by forcing the blockchain to become worthless.

They can also use Antpool, and KYC processes to keep track of every transaction on The Blockchain, and associate with known entities (usually citizens who comply with laws).

Even if you say this is FUD, it's not because Price Bros don't care about the network as long as their fiat bags keep going up.

Most people don't actually use Bitcoin, they just hold paper derivatives of it.

Either way, China wins, they get to profit off of Bitcoin's fiat speculation, and appreciation, or they shut down one of the biggest threats to their global order.