China has been called bad for so long that it's hard for most to imagine anything different.
Somehow, in all, the U.S always comes out to be the good guys, even the worst criminal in the U.S believes he's better, in comparison.
That said, the idea that "China made it" is really just a passed-on to state merit expression we've grown accustomed over the years. We tend to just pass on the praise of innovation to the government of any Country where the innovators are(or their nationality) even when they don't do shit other than regulate.
Somehow, it makes sense because the government will always move to control these things so viewing it as a piece of the government isn't really far off.
Nonetheless, releasing something so powerful for free use was always bound to cause a market reaction, intended or not, it's happened and the U.S has to suck it up.
RE: Deepshit AI, why so cheap?