So China government is taking over and focusing over half of world's mines? :-o

So Chinese government is in fact taking over and nationalising all their crypto markets, biggest world's MINES, networks and specialists - giving them an unprecedented power, all focused, all in the hands of one powerful group, who can synchronise other powerful actions and have access to gigantic resources.

What are possible scenarios?

Will they be able to control the blockchain and whole cryptomarket now if they control more than 51% of the mines?
Could that all be a part of a plan to dominate the network as a part of economy war?

Is there a way to defend the network from such a powerful player?

My imagination displays me quite horrific scenarios, where markets are massively manipulated, sucked dry and left dumped and crippled.
Or worse. I don't think the battle will be straightforward, but rather shadowy and aimed on gathering as much power as possible.

Anyway, we are talking China gov here. Probably most powerful group of people in the world, who I don't believe don't have a bigger and sophisticated plan. It kinda goes along with their politics of world's economic dominance and buying out western world piece by piece.

Scary.