Chinese users reported that they're not able to download my application encountering "This item cannot be installed on your country" message. So I checked the "pricing and distribution" section of my developer console. As you can see in the image, "China" filed is disabled. Some other countries such as "Iran", "Myanmar" and even "Rest of the word" are disabled as well.
The likely reason you are unable to select China and the rest of the world to distribute to in the Developer Console is because your app contains the BILLING permission. The BILLING permission makes apps that are free be treated as if they're paid. If you remove this permission, you should be able to select China and the rest of the world.
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