China doesn't seem to think that powerful open weight models are a serious threat to them. Otherwise they wouldn't release them. Those models could also be used by their enemies against China.
I'm not a fan of the Chinese political system, but they usually think things through, and do smart things for their benefit.
China is worried about AI. In fact, Chinese leadership has expressed more worry than US leadership.
"Second, we should strengthen risk awareness and ensure that AI is secure and controllable. AI should be a trusted tool for humanity. We should take seriously the various types of inherent and secondary risks that AI may trigger. We should put in place laws and regulations, technological monitoring, early warning and emergency response systems in order to strengthen the line of security, prevent abuses and malicious use and ensure that AI is always under human control.
..
With AI advancing at a staggering speed, we must ensure its development is for the positive, for good, and for humanity. We must make its oversight and governance precise and effective and constantly refine measures to forestall loss of control."
https://xcancel.com/S_OhEigeartaigh/status/20780236576206768...
Don't you Dare use logic to analyze their statement, it's based on moral panic.