What they are saying is that they won't be changing anything.

That could of course change overnight.

There are multiple aspects to this: China is cottoning on to the meaning of soft power, and besides that being a major supplier of AI related models, services and hardware further cements their place in the world economy. They may not be able to compete directly with the USA in this domain but they are able to undercut them.

Of course there are risks as well. Models produced and released into the wild for which you have not seen the training and conditioning data could have payloads that you'd rather not have. But the same thing goes for service providers in other countries as well. You can't really trust hosted inference, not to tell you the truth in so far as is was present in the training data (censorship, not inference errors) and not to leak your information.

“Right now, your government is doing things you think only other governments do.” -Van Halen, Right Now

My (not thorougly informed) take is that they are are taking measures to have the capability of restriction but are also adding provisions so that this capability does not add friction to the current practice of enabling export of open weight models.

So to me it's like they are keeping their options open rather than leaning on one versus the other.

What they will do remains to be seen. The document at hand is what they're saying.

I.e. less important if we follow your own assessment.