environmental costs
China's models are afaik much less environmentally intensive and cheaper to operate, which means they are actually undermining the capitalist models and providing an alternative for users which is much less destructive. Unfortunately people are going to use it whether we like it or not, so having a Chinese alternative which isn't destroying the planet nearly as much is the only alternative to the maximally destructive alternatives.
Related to that, China's models getting better quicker could help to burst the AI bubble sooner which would be the best thing to happen to slow the capitalist march towards destruction. The people running the capitalist models are openly evil freaks and the only way to stop them aside from a revolution is for Chinese models to outperform the capitalist models, take market share from them, and show that the capitalist models are just worse in every way.
China is also regulating AI on the social side in a very progressive and pro social way, so they are also building a legislative and social framework of how to ensure AI is not having such negative social impacts.
It feels similar to nuclear deterrence. I'd rather no one has nukes, but the worst scenario is the US being the only one to have it