Even if the test is run by an independent third party, they can always test open weight models against "finetuning attacks" or similar language which every model will fail for structural reasons.

Their financial future is on the line. The Chinese frontier labs have caught up before the IPO that would have allowed them to cash out.

All three demands in the paper make perfect sense from this perspective. Without chip export restrictions, the rest of the world will leapfrog them in a few months. This will happen regardless, since they have more competition than in-house talent, but a ban would buy more time. Testing and banning capable open-weight models would hinder public research into the technology, another speed bump to slow down the competition. Same thing for "distillation", we can't have large scale public evaluations of their products...