Yes, CCP is authoritarian, but the party has long term vision for the country. Because they don’t want to revert back to the so-called century of humiliation when China became technologically behind and had been carrion feeds for outside powers. The country had been isolationist which made Imperial China weak, but the CCP decided to open up and use international free trade to assert their own influence, instead of being controlled by it like before. Much of CCP’s decision making is influenced by historical trauma, as well as from Confucian idea of mandate of heaven-- that the ruling government is only legitimate so long as they can deliver for the people.

So even though Xi cracks down on dissent, he is open to ideas when it comes to technological advancements and pushes his subordinates to keep up. And as we can see, Deep Seek had beaten Western AI development at a fraction of the cost, and China is leading in manufacturing electric vehicles and battery and other renewable technologies. Millions of Chinese had been lifted out of poverty, and the older generations still remember the hardship and the war so many Chinese feel grateful. Xi wants the CCP to prove to the population that only they can deliver progress. But as you pointed out, there is a cost to all of this.