The issues as I understand it is that while initially NFTs have been used for the dumbest shit imaginable, tech bros buying monkey jpegs and money laundering, they have potential to be used for any electronic document or item that you don’t want to be copied or reproduced but also easily electronically transfered. I think medical files and other personal docs where a big one. Other things were applying it to any kind of electronic stock or similar credit system. Some big players that have fucked with the Chinese stock market before were making essentially fake shares and selling them. This is of course illegal but very hard to track and stop. China has banned companies and people from their market that have done this but crooks always find their way back in to any market. If said stocks were NFTs however they would essentially be impossible to make fakes of. If China wanted to have any kind of stock market etc and wanted to ensure it was more protected against this kind of fuckery then making their stock market NFT based would be one route.