More likely the PRC sees the open-weight models' progress as a way to prevent an existing dominant player from cementing their (finicky) lead and pulling up the ladder.
That strategy happens to have beneficial side effects to the global Hoi Polloi, but to attach any kind of benevolence to it would be naive.
How would open-weight models benefit PRC better than their own closed-weight models, but still available at lower prices? If anything, open-weights can be distilled far easier.