I think the Chinese incidence in the price movements are generally over-estimated.
That Chinese exchanges tend to have higher volumes than Western ones is largely due to the zero-fees policy. I don't doubt that there are a lot of Chinese Bitcoiners (above all, people related to the Chinese mining pools) but I doubt the relation between the Chinese trading volume and the USD trading volume is an indicator for the real distribution of Bitcoin users.
For example, at
https://bitnodes.21.co China is on the 7th place (the first is the US, but even in Canada and the Netherlands there are more nodes than in China).
The reason, in my opinion, is more related to psychology. After the USD ATH was not broken, the more the price got down, the more the sentiment is going in the direction "the rally is over". For example, people that bought in the $400s, can still sell with decent profit. "Bad news" liike those from China help the shorters to make profit themselves and to exaggerate the downwards movements.
Maybe 5000 CNY is a turning point, maybe even the $720 area where the "medium term uptrend" would be broken. We'll see.
