It depends on the end goal. Free good enough models are a way to drastically devalue Anthropic and OpenAI. A well timed release of a capable model that can run on obtainable hardware, so that a small/medium company can afford self hosting, has the potential to destroy one or both of these companies. This would narrow down the frontier model oligopoly and give the Chinese government a lot more power beyond its borders.

It really depends on whether the Chinese government wants to make good money or "win" the current AI bubbke.