China has been known to set up local industry, destroy competition through subsidies, jack up prices repeatedly. US does it all the time too with tech services (uber, airbnb, are the more notorious, but all big tech is doing it now), but China is better at capex which is why they seem to be winning this race.

The main difference is that the subsidies in China usually come from the gov, while in the US it comes from VC money or anti-competition practices from established big-tech companies.

If China were setting up international funds and institutions for training with participation from other countries I would be 100% on board. Other countries could provide funding and workforce too and have a say in how the models are trained and safe-guarded. I am not saying China should bear the burden of open-weight models alone.