China has never been friendly to bitcoin from the beginning.China knows very well that it would be very difficult for it to trace the transactions if bitcoin gets widely used.Also,it does not want its country's money to be sent out of its country easily via bitcoin.Also,china's national currency Yuan gets devalued due to increasing number of users of bitcoin.PBOC of china earlier postponed bitcoin withdrawal for some months and asked exchanges to strictly follow KYC.But still,it is not satisfied with the results and now has started to take very strict actions against bitcoin.

That is opposite bro. China loves crypto currencies. Way too much than you can imagine.

Based on the quote that you have given idont think that it implies that China hates bitcoin orcryptocurremcy as a whole.  For me what their government is against with is the fact that some of the coins created were absolutely untraceable.  And i think it is only fitting for them to issue laws against this since it could be disadvantageous to any government.  One of the reason is that they cannot take any taxes from transaction happening through blockchain. In short for me China is just protecting the governmennt's interest rather that literally hating bitcoin.

Thats an overstatement that they hate btc.
Interestingly enough noone here has mentioned  that China bans BTC and other cryptocurrencies because of one simple reason - they care about their economy!

How does this correlate? By buying crypto currencies they stop their citizens of selling their own currency which obviously is bad for their economy!
On other hand I think that they are smart enough to realise that they cant stop innovation and internet and will try to regulate and tax the btc and others.

Definitely right. China certainly does not hate bitcoin, in fact it helps their economy being liquid and running through the several transactions and money it circulates. The reason on why they prohibit their ICOs is because many individuals are using it as an avenue for abusing payments, which results to several investors doubting. The tentative solution that they did was to ban their ICOs in their country which can prohibit and lessen the continuous influx of scammers. Lastly, their prohibition also affected bitcoin transactions under the dark web in their country affecting drug trades and paraphernalia.

The Chinese government does not hate Bitcoin but they want more Bitcoin - because Bitcoin is the future of the world. .
Unstable cryptocurrency markets are from China.

China does not like most of its people investing in bitcoin as a result of which its national currency losing its value.Further,it does not want its wealth being transferred to outer nations via bitcoins.It feels that even though it regulates bitcoin exchanges to strictly follow KYC,still it would be impossible to trace all the transactions.It also does not want to lose tax revenues by allowing bitcoin.So,it just decided to take very severe measures against bitcoin and related platforms.But,i personally feel that they could have followed the model of japan regarding regulation of bitcoin.

It is right that china wants its currency the most dominant nationally as well as globally. No doubt that china is new emerging country of the world to compete other countries to become super power of the world and for this purpose financial control over the world is extremely necessary and bitcoin can create hurdles for china in becoming upper power of the world because bitcoin is decentralized/not controllable and mostly Chinese have invested in bitcoin. That’s why China feels fear from bitcoin and hate bitcoin very much.

for me base on my research about why china does hate bitcoin because  It has launched its own digital currency research institute with a director who openly talks about its design possibilities with publications such as CoinDesk.

What do you mean? Each and every transaction of bitcoin can be tracked. This is one feature of bitcoin that made it to the top. Transparency is there, transactions are in full view of anyone who wishes to check. The blockchain will always present us where the money goes and where it comes from. It's just that there is also anonymity, meaning to say what you can see are wallet addresses and not names of people.