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Those Chinese companies are being funded by a substantial amount of government financing, I think at least 20% has come directly from state owned investment firms or government entities and probably more now. You obviously lose precision when you’re talking in sweeping terms like “China” but I don’t think it’s entirely unreasonable in this case. The Chinese government is playing a much more direct role in AI investment and research than other nations.
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Nonetheless, the government isn't giving it away either. If China had a monopoly on the technology, or simply winning in quality, open weight models would never have seen the light of the day.

I just want to dispell the silly notion of altruism from China in this conversation.

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Bad chyna
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The Chinese government is explicitly calling for open weight AI models, which influence its companies.

https://news.ycombinator.com/item?id=48970449

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