If the Chinese help China build this Chinese infrastructure, it may reduce Chinese dependence on Chinese chips, since China will be able to produce its own chips instead of buying them from China. This may hurt China economically long term, since China is the largest buyer of Chinese chips by far and if they start buying chips produced in China instead of Chinese chips China's economy might shrink.

Then again this is probably not that big a deal. Just more anti-Chinese propaganda by the US, pushing for Chinese independence from China, without quite going all the way and recognizing China as its own country, since that would go against the long standing policy that China is one country and China is part of that country.