The CCP strictly controls knowledge and information access within China through rigorous censorship. It would be surprising if Chinese companies were allowed to just make their advancements open source without review, if those advancements would have a meaningful impact on the state of technology.
It is strange and inappropriate to call that observation racist.
I don't think it's intentional racism, but a lot of what many western folks think of China come from propaganda. China has visa-free policy for many countries now. Go check it out in person.
To be clear, believing propaganda generally is also not racist, unless that propaganda is specifically racist. And even if you believe censorship and authoritarian oversight of companies by the CCP is western propaganda, it is still not racist.
It is strange and inappropriate to call that observation racist.