I think it's worth remembering that China isn't a monolithic bloc, and CCP doesn't drive everything, that there are tons of private enterprises there that would benefit, even if the Chinese government strategically would prefer to push Huawei to grow the domestic capability. There being a ton of private demand internal to China doesn't invalidate Jensen's view that it's a strategic blunder to let Huawei get a foothold in the market. Within the CCP, there's also a lot of inter-regional competition to show growth in their own regions, because that's the primary qualification for advancement within the party.

That said, I don't have any special insight into the specifics of who was driving the demand backing Megaspeed.