That's a very selfish way to think of it. Whatever they do in their country does not stay in their country because China is becoming a superpower so you should expect it (as it's normal) to interfere and affect policy abroad.

For example Lithuania has been punished for letting Taiwan opening an embassy (in Lithuania). So China cares what other countries do in their country. Without EU support Lithuania could have faced very harsh consequences. That's just an example. Another example is the "secret police" stations undeclared overseas police stations operated by China in various countries (i.e. U.S for example). China gave you cheap material goods because that was its business but you have to keep in mind it's an authoritarian, communist regime. It carries an extra risk on top of the potential economic coercion if you give it too power. At least you know that U.S is only after the money and does not want to turn your country in a communist "utopia".

That being said this does not mean we should ban Chinese AI models because China didn't cross any red lines(yet) compared with Russia for example.