"China wants to make money. If that takes certifying tat to be able to sell it in Europe, they will. Of course, they'll prefer to "certify" it, but sooner or later that stuff will get largely weeded out. Also, uncertified grey market stuff will only be part of total idIoT sales anyway.
And about those 1.5 billion Chinese, maybe the more relevant metric is the purchasing power they have, compared to 450 million Europeans.
Your point, as you're stating it now, is not particularly strong, and expressing it as you did as "China has nukes" is utterly opaque. Someone who until recently visited China regularly, overseeing the manufacturing of electronics, considered it totally ludicrous."
China wants control more than they want money. It's just that the latter is the safest way to the former. But if they have to spend some to get more control, they'll do it. That's what happening with all those "goodwill" projects. They're plunking down to gain beachheads.