"It’s obvious to me that there are ecosystem benefits throughout China, from manufacturing to scientific research; every sector can just plug in these models."

I agree with this sentiment and think it's echoed in Fareed Zakarias take here: https://youtu.be/VBblUjLw5lE

China seems to perceive AI as a much more sensible technology than the US and seems to be integrating it in far more industries than the US.

I'm not sure the American mind can understand the distributed benefits afforded to the Chinese economy from opening their AI models, I think it's pretty reductive to assume it's purely a strategy of undercutting American frontier labs.