What the Chinese government can't control is the use of VPN's to circumvent the use of foreign exchanges, the huge crypto mining operations in China, and the untraceable nature of crypto which will lead users to circumvent these controls. It's a losing battle for China (they just don't know it yet)
The countries that embrace Bitcoin and Crypto will be leading centers of innovation and governance. The rest will fall behind. China will regret this decision as it had a chance to be a leading center for the crypto movement.
Roger Ver said it well"
“Google, Gmail, YouTube, Facebook, Twitter, Wikipedia, & now Bitcoin exchanges. If strangers in China try to ban you, you're in good company.”