China knows what Bitcoin will do to it, they have to control their population. They have had their Iron grip on the population for too long, to let it get out of their control now would destroy them; They have no choice.
Bitcoin is extremely disruptive it returns monetary control to the population, Monetary control can give a nation a way to manipulate the market, without that, bad market decisions correct themselves drastically, in essence, Bitcoin economically spanks you for making bad choices, it forces people to learn to express their economic power rationally.
But anyway, it just means there will be no Chinese places to spend those bitcoins, they'll have to purchase from abroad... their loss. So who wants to start up the first Chinese Proxy Escrow so these poor deprived people can spend and hold their bitcoins abroad? A Barter Exchange System could bypass these regulations, everyone has something they are willing to exchange for something else, there are no laws against people sending products abroad to receive goods in exchange are there?
