Regardless of how sad late stage capitalism makes you, or how outrageous one claims to find "hypocrisy", any national security argument about limiting Chinese AI capability stands on it's own, at least for nations likely to be drawn into a war.
Also, all the local model enthusiasts who assume Chinese firms are going be allowed to endlessly release models if they have disruptive potential attributed to Mythos are probably in for a rude awakening. Just because the PRC is content about what has happened in the past doesn't mean that they would tolerate an open model that could be truly destabilizing.