Yes it is not in alignment with the spirit of open source. In the “industrial districts” there is no validity for copyrights. Means if one company developed something, any other can adapt it without any restriction, even without a license. This is very counter intuitive to our capitalistic rules. But this policy essentially forces you to make progress as quick as possible, else someone else will adapt it and make a product out of it. Then you lose all the market.
China is forcing companies to make money out of capitalistic economies, but restricts the “knowledge” or “technology” accumulation into a few mega corporations.
At least this is the theory. But as everywhere else corruption and hunger for power screws up things in China also.
I also didn’t understand the logic here. Why did they “did not want to alarm them”? Is it because a one person company can simply fix the issue and not report to any other authority? What is the rationale behind it?