No need to include all the tracking crap --
http://www.zerohedge.com/news/2017-02-24/bitcoin-surges-record-high-china-prepares-its-own-digital-currency <-- This works just fine
Thought experiment time.
Lets say the People's Bank of China does release a cryptocurrency. This gets people used to using it, in addition to the steps needed to sync to the national blockchain. As this occurs, existing Chinese Bitcoin users start educating the people that are using ChinaCoin about Bitcoin.
An interesting economic shunt starts taking place. Value from the bad centralized system starts flowing into the global good system. The Chinese government isn't pleased, and after some attempts to regulate, shut down their coin.
Then you end up with a bunch of Bitcoin users that wouldn't have existed in the first place, all paid for by efforts of the PBOC.
I say, go ahead, it should be highly amusing.