If we believe the Dalai Lama is a Buddha, he can emanate in many forms. I think that China would probably recognise their own Dalai Lama - perhaps with the consensus of high lamas who have remained in Tibet, or with endorsement from the Dorje Shugden lamas, such as HE Gangchen Rinpoche or HH 101st Ganden Trisur Rinpoche who have endorsed the Chinese Panchen Lama. I do think that everything is part of a larger cosmic picture - where the objective of these Lamas is to benefit as many people as possible.
As for the Dalai Lama's lifting of the ban on Dorje Shugden before he passes into clear light, I can only pray that this will happen as I have previously mentioned that it is the only way for Dorje Shugden to get mass acceptance. However I have been told that this is unlikely to happen. If the Dalai Lama does not personally lift the ban, I am sure the ban will fade away over time but it will take longer for everyone to change their view of Dorje Shugden, and possibly the controversy will continue for several generations. I guess time will tell.