That would not make much strategic sense. China's main advantage is its export power. Why would they cut that off? They are also making incredible investments in actual power to sustain this. The kind of investments the United States doesn't seem capable of making, mostly because our leaders are staggeringly incompetent and unfit. And no, picking the bar up off the floor is not good enough.

Once they dominate the market, they will export to keep it that way. The exported models will be a generation or two behind their SOTA. It will nevertheless surpass Mythos unless you believe we are already at the peak. And it might be "free" but it will obviously be backdoored the same way the United States government benefits from Microsoft's global dominance. The same way America hands out fighter jets just generation behind their own best to keep other governments part of the club and in line.

Unlike the United States where every four years we are at risk to some 180 on policy the Chinese have a clear thesis and a clear direction. How many presidents has Xi seen come and go? Do you get the sense he is getting more impressed? They really don't have to do anything but just keep doing what they are doing. Suddenly stopping their export engine is not in keeping with this strategy. That is "stable genius" behavior.

the music may stop in the future, but right now it isn't even slowing down.

Xi did not interfere when Chinese labs released GPT-4, o1, o3, etc level models. why draw the line at current SOTA that will be old news in a year?