It was all just a ploy to get cheap Bitcoin and other alt-coins so they could make MILLIONS while the rest of us lost thousands upon thousands each.
The Chinese investors are very smart and market manipulation is their specialty. China has always manipulated their currency and markets so why would Bitcoin be any different? If anything it's easier to manipulate because BTC markets are mainly driven by psychological factors and have very small liquidity compared to tradition commodities.
It only takes a small amount of money (relative to other types of commodities) to move Bitcoin prices dramatically. In conjunction with some bad press this is the perfect storm for a price crash. The price immediately rebounds every time, however, because the fundamentals have not changed one bit :)
The Chinese government wants its hand in everything. For this reason, I presume they are going to have state run exchanges and mining operations.
I agree with the sentiment of your post...nothing to fret about in terms of the Chinese. It was a major buying opportunity.