Everything they do is understandable if you think they are being honest when they say they're building superintelligence.
In this case they want to prevent a nation that censors its citizenry, puts/disappears dissidents into concentration camps for decades, and makes its own human rights lawyers literally eat their own shit, before raping and/or murdering them, from reaching superintelligence.
In this light, some client side code to potentially identify and ban the Chinese labs to slow them down by even a few days, is totally reasonable.
And do a -10 in their reputation. Plus blow up on hn first item on home page. I’m sure they are not very happy about this. And the sentiment of the people is going more negative by the week.
I have a feeling they will eventually drop the facade of “we’re the nice and ethic people” and will work with palantir so they can survive the future: ipo and models bans.