For China’s government, more than company profits is at stake. Standards can encode social values deep within a technology. Many features of the Western-designed internet, for example, have tended to promote individual privacy over centralised control, thereby irking China’s authoritarian government.
In recent years it has thus been campaigning to rewrite the standards that underpin the internet. In 2019 and 2022 Huawei proposed alternative internet protocols at the ITU that would have enabled a far greater level of government control. Neither was successful, but they did receive support from member states such as Iran, Russia and Saudi Arabia.

I very much prefer the individual privacy policies over centralised control though.

Europe could flex its power over this though. They should.