This is a meatgrinder conflict. If China can reduce its dissident or potentially rebellious population while avoiding a collapse of Russia mirroring WW1 Germany, they may very well (and I would argue are likely) do so.
I wouldn't assume a small number of Chinese nationals volunteering to fight for Russia means China approves of their actions. Several Australians ended up fighting for ISIS in Syria and Iraq, that doesn't mean the Australian government approves of Australians fighting for ISIS, it just means it failed in those cases to stop them – it didn't realise they planned to do that before they left the country, or they didn't decide to do it until after they were already living overseas.
And one difference, is obviously Australia and ISIS are sworn enemies, so when Australians volunteered to fight for ISIS, the Australian government could openly condemn their action. Whereas, China and Russia are allies, so even if China disapproves of its citizens volunteering to fight for Russia, it can't condemn them publicly because it would harm the alliance.
Make no mistake: if China wanted to shut this down it could.
I think the word "supposedly" is important here – I don't think we have any hard data on how many Chinese volunteers there are serving with Russia.
And I'd question how big a military contribution these Chinese volunteers are making. Russia has hundreds of thousands of troops fighting in this war, even a thousand Chinese volunteers would be less than 1%.
> Make no mistake: if China wanted to shut this down it could.
Even if the Chinese government is willing to "turn a blind eye" to this going on at a low volume, that doesn't mean they'd let it grow to a significantly higher volume.
It also isn't clear whether this is a deliberate initiative from the very top, or something that has grown organically bottom-up and the people at the top have decided to let it be for now rather than crack down on it.
The only thing Chinese nationals fighting for Russia tells us is that China is not expressly limiting freedom of movement to do so...but there has also been at least 1 American who tried to join Russia to fight Ukraine (and was tortured to death by the Russians on suspicion of being a spy for his trouble).
With a country like China, everything is on the table
For China, a balkanized nuclear Russia may be a greater threat than supplying them manpower (due to surplus men and civil unrest) and materiel. I would not expect Russia to run into the WW1 germany problem.