China is a big country in this world. This influence on crypto is actually very high, They always spread FUD every time the price is coming to rise up in order to make any drop. But we don't know the right reasons behind it, whether they really want the price drop because they dislike crypto, or they want to control Bitcoin, make the price dip, and then get many more Bitcoin to prepare before the next pump.
We also actually realize that with or without those FUDs, Bitcoin price will always skyrocket moreover if the cycle of halving has been finished and the price will commonly create new ATH. But on the other side, we may not underestimate what China can do, although it may only influence for a certain short time, it exactly will give a big impact at that time.
China is a big influenced country and it keeps manipulating the market in the previous years. But i think this time, the market is not affected that much as it is before. There might be minor dumps but we have seen that the market is starting to recover again. So maybe in the later part, China will not affect the market anymore. And as the adoption of bitcoin continues, there will more bigger countries who will start to backed up bitcoin and support it all the way. Whatever China plans in the market for their own advantage, it will never be as relevant as it was.