China didn't have anything to do with the downtrend in February, and there is no reason to suppose demand in China is decreasing. The biggest issue with China recently was the uncertainty of what would happen on January 31st (which amounted to nothing); and all we did in January was fluctuate around $800 while worrying about the possibility of something on the 31st. February's downtrend was caused by uncertainty in mtgox and other exchanges, lies about the extent of transaction malleability, some finally mtgox's insolvency. Those issues have mostly been resolved at this point.
Then how comes the price remained stable throughout the Chinese New Year's holiday week (from ~Jan/29 to ~Feb/05), when volume was very low at the Chinese exchanges; and started to decrease, with increased volume. as soon as the holiday ended and banks opened?
The MtGOX withdrawal problems did not seem to have any effect on China, which is understandable since MtGOX is as relevant to Chinese investors as BTC0China is to western ones. On the other hand, the announcement on Feb/10 of a "bug in bitcoin" did shake all markets, including China.