That sentiment calls for reflection - whoever ends up on top of the heap after the AI craze settles down is going to be someone that everyone objects to. Elon Musk was himself an internet darling up until he became wealthy and entrenched.
That said, this does look like dreadful policy at the first headline. There is a lot of money going in to AI, adding more money from the US taxpayer is gratuitous. Although in the spirit of mixing praise and condemnation, if this is the worst policy out of Trump Admin II then it'll be the best US administration seen in my lifetime. Generally the low points are much lower.
This seems more like a move designed to frighten China -- or force them to spend money making LLMs -- then an actual threat. The clues are that Trump ceremonially blessed the deal but did not promise money (SoftBank et al will, supposedly), and then Musk said that's all fake because SoftBank doesn't have the money, and Altman countered that Musk should not be butthurt and should put America first. Who does that? I'm thinking, no one who has something real on his hands.
I see two possibilities here, either that the CCP is not that all-reaching as we think, or that the value of the technology isn't critical, and that the release was further cleared with the CCP and maybe even timed to come right after Trump's announcement of American AI supremacy.