Not just the CCP, but in the West, too. We've already seen turning bank accounts off for protesting or supporting protestors in Canada, Paypal debanking people for speech in the US, and vaccine passports for in-person exchange goods and services.
The West used to point to the CCP's totalitarian policies in condemnation. Turns out, they were just saying "Hey, look over there!" While taking good notes.
CBDC and Govt issued wallets will serve the same purpose as this chip.