>>105706642 (OP)China's people aren't China.
The Chinese government can really only set industrial policy and guide industries using promises of money and protection.
Sure they could probably be heavy handed and tell people to stop releasing shit into the open source, but the Chinese government clearly knows when to let the market do what it wants and when to rein it in.
If you're a big corporation there are advantages to the open core model. You can use the open source version to incubate ideas and see which approaches are winners and losers, then later adopting the winning approach as stable into your software.
This is a big advantage if you make a lot of money in platforms. No one really believes there's competitive advantage in plumbing. That's why open source is powerful there, because if the industry can converge on plumbing then they can find advantages in real features.
good examples of plumbing:
RISC-V
Linux Kernel
Kubernetes
NixOS
Containers