In your take, why are they producing and giving away such good local models? Mindshare? Promotion?
The state can use their AI as a tool to bolster their standing, which is working well. Chinese AI labs don't have to worry about making money or affording more compute. The state will (and does) give them whatever they need.
But seriously, if it works so well, why don't we do it too?
China just has the state with one leader than thats it.
> it's called soft power, look at endless glazing, it works