I would argue every technology represents the values of its creators. The fact that Meta hid the toxicity of Instagram and let their practices continue reflect their values in their product.
Not that I agree at all with the Chinese government, but I think it makes a lot of sense to regulate and give developers a direction - or moral compass. EU does it as well.
AI absolutely has values. It's based on the source material you feed it, so anything in that source material is passed along to the AI. If you fed an AI solely fascist material, the AI would reflect fascist views and ideology.
It is my assumption that they mean that the AI should not espouse capitalist thought, and should wherever possible promote socialism and socialist reason.
"I'm sorry, but as an AI i can't justify harvesting organs from prisoners, genociding uyghurs or illegally occupying Tibet"
"Fuck me, better run it through another revision"