Well...yes and no. I'll use Russia as a comparison. At one point the state used controlled religion to combat "independent" religion via the Living Church. It failed miserably, but the attempt was to make a gov't-sponsored church that answered to their limitations and thus gained a (obviously very temporary) benefit of being legal and legitimate. However, Russia also sought support from the Russian Orthodox Church during WWII to gain stability. Stalin met with its representatives and asked the church to support the war effort, therefore boosting morale. Though it really is more likely China would follow a similar logic to the first idea rather than the second.