But I still do not understand, if the transaction crypto and crypto trade is still allowed either officially through exchanges and personal trade, does this mean China does support Crypto trading?
It doesn't mean they support it, just that for the time being, they don't see it as threat. It somewhat makes sense -- if you legally prohibit crypto to fiat trades in any shape or form, people won't be able to obtain or sell their existing crypto. Obviously, people will keep trading crypto for fiat locally, but China made sure the mass is somewhat excluded from crypto, and I think they are pretty happy with that as result. This however doesn't mean they will never end up prohibiting crypto to crypto trades as well, but at least the priority to do so is on the lower side due to the decentralized nature of crypto. It's basically pointless to ban something that can't be banned, so for now they don't, which should give people some level of hope....