There is a Bitcoin future in China, whether the government bans it or not. The fact that it's useful for evading capital controls and other State restrictions guarantees it.
Is it? Basically the only way to convert Yuan to/from Bitcoin now is through a Chinese bank. Both the bank and the exchange will want your ID.
What do you mean exactly by "evading capital controls and State restrictions"?
There are many miners in China. The Chinese could buy or trade from them even if all the exchanges closed. One could buy from anyone in China who holds bitcoin and was willing to sell. Communist countries have always had black markets.
As predicted, the news is exaggerating the crash yesterday. The market is back to where it was in less than 24 hours, and thats how resilient bitcoin is . However they are not writing about any of this. Once bitcoin breaks this resilience I see a bullish trend.