China buys, steals or copies whatever it can to catch up the West. Normal citizens are encouraged, nee' required, to help the CCP in these efforts when asked. Some do it for personal gain or sense of patriotism, or both. Theft is no problem, look what the Chinese have been doing to museums all over the world when it comes to Chinese antiquities.
CPUs are a crucial area where they can't compete, and we've put sanctions into effect that will prohibit the sale and development of high end stuff that would be handy for their military expansionism or their desire to further militarize space. 10nm chips would be easy to sell to a Chinese firm or party official I bet, or maybe this was going to be pure blackmarket for highest bidder.
Amateur hour though, clearly. Someone doesn't care about details.