They may reverse course in the future, but the current directive from the CPC is that Chinese AI labs should be open sourcing their models.

https://www.businessinsider.com/xi-jinping-open-source-ai-us...

I don't think it's necessarily "wiser" to go closed source. All of AI is built on mostly openness, at least on the software side. There are other ways to compete, it's just the model itself will be a commodity.

You’re describing the dump and pump strategy that china has historically used across a number of industries. Stands to reason that this is what is going on.