Regarding Bitcoin there is no changing of policy in China. The Communist Party is founded on absolute control of people and money, and any freedoms afforded by decentralized currency are totally unacceptable to them. What they still tolerate for now is crypto mining, for two reasons only. The first is that miners sell BTC for a fiat and pay taxes, and the second is that there is some surplus electricity that those same miners are buying. Also, the very lucrative production of mining equipment should not be forgotten, and given their cost, it is a big profit for the Chinese economy. All what is BTC-related and controllable is welcome so far, but BTC as a currency is completely undesirable.

What China has allegedly been working on for many years is a national cryptocurrency and if that project becomes a reality, the Chinese will adapt very quickly and no one will ask them for an opinion, they will be forced to use what the authorities impose on them.

China has been on track to become the world's largest economic power, but current developments will definitely slow the process, given all the accusations that China is charged with causing the pandemic by producing a virus in the lab, and fabricating data on the true scale of the epidemic in their country.

It's quite official now, they're in the middle of tests already.

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The Chinese digital currency is a double-edged sword. While it gets us a step closer to the adoption and interest in Bitcoin and other cryptocurrencies, I think a lot of people are going to say "Well, we already have a digital 'cryptocurrency' we are using and it's 100% legal, why try BTC out?". I can't wait until they start advertising it as a cryptocurrency built upon the blockchain tech and blah blah. It's going to be an interesting debate.

When you say financial center you mean economic superpower? Both US and China are well ahead of the country so I guess it will remain like that for many years. You might have confused crypto like bitcoin with the total crypto outlook of China regarding crypto currency. They are encouraging its people to used their own digital currency, for all we all it has already taken shape in their own country. But it doesn't mean it encourages its people to go full cryptocurrencies like Bitcoin or Ethereum or XRP or whatever. It's very different.

I don't think China has declared any policy change regarding crypto usage in recent times. If yes, can you please share a link of the news?

What has happened is that, China is launching their own digital Yuan. The government employees of China are first to test that and slowly the same will be implemented across the country within this quarter.

CBDC of China will not help China in becoming the financial center of the world. It is not designed for this reason. CBDC in China is designed to reduce the government cost of printing money and to impose holistic administrative view on people's funds.

I see even that the liberal kind of system or society are the best for bitcoin because most of such country's policy would be open minded  and not a kind of socialist ideology that would try to cage people with inhuman policy that only focus on government taking total control of the economy. If government take care of the economy, it means every identity and activity would be scrutinize by government but the America kind of democracy isn't the type that won't give citizens of the world at large the freedom of choice especially where the choice isn't against nature. I believe the US are more favoured.

I think this will be better on the Altcoin Section.
It is not really bitcoin related just how you made the title.

Bitcoin discussion rule.

As of their digital currency, it will just be the same as their fiat.
We are talking about a communist country here so "freedom" is something they would shrug off.  
They are enhancing their financial industry but not changing.

Personally i think bitcoin is basically legal in China On 5 December 2013, people's bank of China made its first step in regulating bitcoin , it is not deemed as legal tender, nor does it enjoy the same safety features as the Chinese Yuan. Now china was changed blockchain platform they are change system crypto market. More than that, financial institutions, such as banks, are banned from dealing with any cryptocurrency. The very important think crypto market research at cryptocurrency exchange and trading platform blockchain.

China like any government won't provide you with a concrete policy. 
Government don't generate profits. They take from someone else to give you free stuff.
If you uses bitcoin that is a big problem because supply of free stuff are being diminished.

They will manipulate, distort, and keep you guessing while tricking you to give up control of your bitcoin to exchanges (with lost of privacy and identity which is more valuable than btc)

once in exchanges that just like commodities and derivatives it can be easily manipulated. Ever wonder why OIL is free? and COMEX couldn't find bars to make deliveries?

LOL.

I've already heard of it before that China will create their own cryptocurrency and I'm not sure if they are doing it now. If China would create its own cryptocurrency will that be accepted globally like transacting to other countries using its own cryptocurrency and how it will be valued in terms of the global transaction? Within the country, it will be easier because you will be dealing with someone who also has the same currency as you do but dealing outside then the cryptocurrency needs to have it's own value as it should go for forex. But having all these China will still have their own ways to make this possible especially when they found out that it has plenty of advantages to them.

The People’s Bank of China (PBOC) was pushing to have their own cryptocurrency last year together with Facebook and that is Libra. That's might the reason they are banning Bitcoin there.

For all i know from my latest findings, china haven't really adopted cryptocurrency and dosen't encourage her citizens to use bitcoin However, there are cryptocurrency activities which are not ban by china e.g crypto mining and this is so because they generate huge revenue due to taxes imposed on mining activities and about the digital currency being created by them, i think it's a way of having power above any rising currency