And what do you think happens after the govt said that? Going to companies and force them to open models? That's only how westerners' misconception of China works. If you study Chinese EV industrial policy history you'll know they're not based on coercion of private parties but on incentives (and that, ironically, private EV companies succeeded despite incentives, not because).
The real policy mechanisms around open AI models are also incentives. Various cities have programs to pay companies for releasing open models. They subsidize compute through vouchers. They reward universities and students for open source collaboration.
This isn't some black box. The policies are written down, anybody can read their AI+ policy papers.
Alibaba went back to releasing open models way before the Xi speech from a few weeks ago. The cause is pressure from researchers, who believe in openness, as well as the competition who keeps releasing open models. This is Chinese "involution" at work. And the subsidies also help, of course.