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It's probably because those with decision making authority have no idea what open source is and how it works.
That being said, China is a huge contributor to open source. For example Huawei and Alibaba are among top kernel contributors.
Hwawei has been called out for KPI farming on the Linux kernel (i.e. lots of bogus contributions to boost their support numbers): https://lkml.org/lkml/2021/6/18/153
There's some more insight on this Hackernews thread where an ex-Samsung employee defends Hwawei and notes it's not intentionally KPI farming, but rather poor internal performance tools.
I would gladly be proven wrong, but a quick Google search doesn't discuss any concrete contributions Hwawei makes (only Git simple git diff metrics, which fall under the discussions linked above)
Huawei is not the only one. Almost all software companies have some KPI that employees are farming. (speaking from experience here)