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If they can't control it, they have no problem if the alternative is destroying it ("either you are mine or I'll kill you" type of thing). All this could not be happening without the Chinese Government intervention, and we know for a fact that they've been intervening in Bitcoin a lot.
Jihan is just their puppet. Either way, they will just keep failing as always since decentralized money-badger don't care. And all their efforts will keep backfiring since all they've accomplished is two things:
1) Promote bitcoin and making it more popular by raising it more on the collective consciousness and making more people aware of bitcoin when before they didn't know it existed (Streisand Effect?).
2) Legitimizing bitcoin more every time, the more they regulate it the more legit it becomes in the eyes of the majority of people that needs 'permission' from the government to do anything.