There's a currency war going on, those calling it a "trade war" are missing the forest for the trees. It's not about Bitcoin vs. Gold, it's a demarcation of which fiats can collateralize and which can't. The story early this year was how much gold the US is repatriating from London and it's potential re-valuation... and Tether is now a defacto arm of the US treasury. It's not just China.

There's ~180 fiat currencies today, all propped up at least in part by a globalist command and control system that's being overthrown by the sovereigns themselves. China and the US are actually on the same side in this in a way.

Collateralization serves as a firewall for the sovereign as these 180 or so currencies collapse down into just a handful. Even then there's no reason for multiple fiats to exist and the dollar is the default fiat, the inevitable end-state is the final boss pair of BTCUSD... China can't stop that, but what it can do is avoid going broke in the process by collateralizing ahead of it.