It might actually have the opposite effect. Working for a highly bureaucratic government run firm might not appeal to many entrepreneurs and engineers. The CCP is not exactly known for ideological flexibility or just outsider thinking in general. Imagine working for the government, and that's the main engineering opportunities you have. Imagine your only opportunities being huge multi year hard engineering projects.

There are many people who enjoy working in fast paced environments or building cutting edge experiences and products.

You could see the US brain drain top Chinese technical talent because the US has diversity of opportunity. There's Space X and Tesla, but also Uber and Google.