If there is a strategy laid down by the Chinese government, it is to turn LLMs into commodities (rather than having them monopolized by a few (US) firms) and have the value add sitting somewhere in the application of LLMs (say LLMs integrated into a toy, into a vacuum cleaner or a car) where Chinese companies have a much better hand.

Who cares if a LLM can spit out an opinion on some political sensitive subject? For most applications it does not matter at all.