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Why do you think you're right?
Without it state control could eventually implode, endangering government itself. Since Xi himself actually needs the advantages of AI in order to maintain control, he must control in order to control.
Why might you be wrong?
I may be wrong if Xi concludes that a larger, more long-range strategy of AI openness would generate an intrinsic loyalty that would make government control less important. Not sure, he is that wise, but he is flexible occasionally.