I don't see how your description of the China situation restores your point that governments are becoming irrelevant. China is deploying facial recognition and AI to figure out who you know and who's helping you and in a cashless society they can penalize you by cutting off your cards and those of people who try to still help you.
I didn't make that claim with regard to China, but I see your point. I've also never been to mainland China, so I don't really know how things are there.