I can never understand why politicians claim that mining Bitcoin causes a flight of capital. I suspect the reverse is true. You might just as well say that manufacturing cars causes a flight of capital, because auto-makers have to import the steel.
I don't think they care about flight of capital. It is just one of the made up reasons to rally against crypto. What they actually want to avoid is to allow a "type of money" that does not need the backing of political power.
In a world where Bitcoin gets adopted widely as a currency, groups like Bitmain can potentially have enough power to be an alternate political system by themselves. Chinese are particularly fond of concentrating political power (Politburo, the party and all that communist compulsions) and they are unable to make up their mind about bitcoin.
Concentration of mining in China is kindda a double-edged sword for them. They let the miners use all that free energy and monopolize mining, probably in the hope that they can takeover and call shots from behind the curtain.
To spoil their plans, miners probably see bitcoin and mining as the one thing that their communist overlords are finding hard to control. The Chinese govt is wary that miners and bitcoin may get too powerful to control (considering that they have already started to diversify in terms of location).
This maybe the reason that China has this love-hate relationship with Bitcoin..(Ban it! No wait, Rate it!..But Rate it below EOS!!)
