If the Chinese government has anything to say about it, which in China they typically do, they won't be able to close everything down since the official stance is to be more open than closed.
First, adhering to the principle of openness and win-win cooperation while boosting innovation-driven development. Xi highlighted the importance of encouraging open-source, openness, collaboration and sharing to facilitate technological innovation, industrial development and scenario-based application of AI.
(This is also widely reported in mainstream western media.)
I'm sure there will be a shift in tone/direction if/when Chinese models gain a substantial lead over the US models, but at least for now, this is the official stance.