IIRC the state of Niedersachsen has some special shares, so that’s not going to happen.

I suppose from the principle that everything is possible, this could be true.
VW would absolutely be a very attractive brand to buy, more than anything Stellantis, which is more vulnerable AFAIK.
China already own for instance Volvo and MG, but I’m not sure lawmakers would allow them to buy VW?
I’m also not sure the Porsche family would be interested in selling out to China either. Probably a last solution if VW should get into real trouble as in nearing bankruptcy. But I don’t think that will happen, because the VW group lineup that includes Skoda Audi Cupra and Porsche is very strong.