We must not be naïve here: the geopolitical stakes are so high that there will likely be stark limits on what can be achieved, especially at first. If we greatly restrain our AI capabilities in the belief that China will do the same, and then China defects, AI could be so powerful that such a defection could lead to their geopolitical dominance.
It is certainly true, but it could also be a good excuse to pose themselves as the "good guys" and others the "bad guys". Then, they could say "we tried it to be paced, but we could not", cleaning their image to the people.