While that might be true, it is unlikely that open source models' capability will ever surpass frontier models --- if you have the best model (by some margin), then people will want to access it, even if it means going through compliance.
Yes, that's what I meant. It's not that the Chinese will never be able to come up with models that superior --- it's simply that they will no longer have the incentive to open-source them once their models take the lead.
Training models are expensive. No one can do it for free for very long.