WeChat & AliPay already dominate digital payment, so it wouldn't be weird if Government create something similar with libra where WeChat, AliPay and other bank/payment service are the members.
I doubt the Chinese government is willing to share such an important slice of the pie with corporate entities. I don't see why China can't set up a national payment network competing with both WeChat and AliPay.They'll be member, but i they won't have any actual power/control. The government will give convenience such as send stablecoins to different service (such as send stablecoin from WeChat user to AliPay user) and they'll have full control.
Would you trust a company with your wealth that are doing things like that? When centralized entities like this control their own currency and they are backed by a government that does mass surveillance on their own citizens, then it should raise the red flags. 
