Definitely, China will not ban Bitcoin, its exchanges and ICOs. I am however not sure if the government wants complete control. If they did, it only means they have not grasp what crypto, crypto currency and crypto economy really are. Without decentralization, "crypto currency" will be just like the numbers in your bank account. And if they did try to issue their own crypto currency, it only means they are in the Bargaining stage of The 5 Stages of Bitcoin Grief.
Here is a talk by Andreas M. Antonopoulos on this topic.
RE: Disclosure: Is this the real reason why China is banning Bitcoins?