>explains why the Chinese

I think it's less that they want to encourage deflationary economics - because I think this has a tremendous chance of backfiring given that is not how massive productivity/efficiency gains have turned out in the past.

I think they genuinely want to prevent the rise of yet ANOTHER Western bigtech monolith in Anthropic and/or OpenAI. They want to make sure they have no moat. That keeps the value out of the nascent bigtech and instead in people who can run the models.