It’s an incentive problem. If “sovereign” becomes your claimed value proposition, you can claim success even if the models not competitive, so nobody is pushed sufficiently hard to actually make it good.

Sovereign works when talking about building a commodity supply or something, not in literally the world’s most competitive and fast moving field.

Those seeking sovereign capability would be better off aiming to be best at something, even something much narrower than an all round LLM. Or just fast following and making something that matches leading performance, which is close to what the Chinese labs do currently.

I can think of at least one other pretty good reason, which is in anticipation of regulatory capture. If "LLM used must be FOOBAR-certified" and coincidentally no Chinese models can get this certification, having such an alternative is a lot more valuable than just scoring highest in a set of benchmarks. Not to mention that these benchmarks aren't always accurate.