Chinese GPS chips dont have those restrictions.
I even have 1 that can remove up to 8 active jamming signals.
Gotta love what you can buy for $20
It would be interesting to see if those are only for external sale vs restricted for sale within China.
If China allows those unrestricted chips to be sold internationally but not domestically it would be a strategic long-term decision, I would think. Destabilize the neighbors but not themselves.
The more likely reason is that their government has simply not gotten around to restricting it.