I don't know where you get the idea this is a nation state attack.
The devices are used to sell proxy services and scam advertisers. This doesn't even need particularly large organised crime. It would certainly be easier than large scale illicit drug importation and retail, which is happening all the time.
Could China exploit these streaming sticks if it wanted to? Maybe, but no more than any other nation.
Not necessarily correlated to this, but my perception is that china is generally ok with many types of crime as long as it’s not perpetrated on its citizens / aimed at foreigners (IP theft / counterfeit goods / cyber crime etc). However, I also think the state largely has a good sense of the actor or players and is perfectly capable of exerting force or coercing them to their cause at will.
The devices are used to sell proxy services and scam advertisers. This doesn't even need particularly large organised crime. It would certainly be easier than large scale illicit drug importation and retail, which is happening all the time.
Could China exploit these streaming sticks if it wanted to? Maybe, but no more than any other nation.