> I think the Chinese government is backing their labs by less direct means.

It may be that the effect of the backing in both places is essentially equal but this statement is strange. The Chinese government invests directly in Deepseek[1]. Notice the article, in addition to saying the CCP is investing, says Tencent is also a major backer. CCP owns a golden share of Tencent.

[1]https://www.cnbc.com/2026/10/06/deepseek-funding-round.html