Those are orbits with 100+ year dynamic lifetimes (as is regularly discussed, i.e. ref [d]). It's true that they could actively deorbit them; that's the lifespan of passive debris that fails to actively deorbit. (Ref [d] also discusses spent rocket stages in this context, and China's uniquely bad behavior there).
I assume the main motive behind this is basic business economics. China doesn't have reusable boosters; the ones that might succeed this month won't reach Falcon 9 levels of mass production, and launch cadence, for several years. They're on an expensive on-ramp. To a first-order simplification 1,100 km orbits need only 1/4th as many satellites for the same coverage as 550 km orbits.
[a] https://www.space.com/china-first-launch-internet-satellite-...
[b] https://en.wikipedia.org/wiki/Guowang
[c] https://arstechnica.com/space/2025/08/china-may-have-taken-a...
[d] https://spacenews.com/chinas-megaconstellation-launches-coul...