I have a feeling there is some elite data labeling operation going on in china for these labs at a subsidized rate somehow.

Maybe, but I don't think that's necessarily a problem. "Subsidized" is a loaded word on HN because it often refers to the unsustainable consumer pricing of U.S. AI labs that will inevitably lead to market corrections. A subsidy by the Chinese state to avoid strategic encirclement isn't necessarily unsustainable nor irrational.