I don't think the issue of Lee Soo-man's Chinese idols will be a big deal.

‌I think Lee Soo-man played his cards very smartly this time.
First of all, the corporation is located in China.
And that corporation has already launched and is promoting a group consisting entirely of Chinese members.
Therefore, there will be a valid justification, so there shouldn't be any issues with their activities in China.
Even if launching from a Korean corporation to China can be resolved by paying penalties, it seems like it would be even more complicated to pull idols away from a Chinese corporation, and there's no reason to do so if there are no problems with their Chinese activities.
While it is clearly K-pop, Lee Soo-man is publicly advocating for "A-pop."
It looks like they will likely pursue activities in both Korea and China. And eventually, Japan as well...
The real issue is whether there will be backlash from fandoms in each country.
In Korea, there is a massive SM fandom, and since there are 3 Japanese and 3 Chinese members, I don't think there will be much backlash in any of the respective countries. A dedicated fandom will emerge to defend them... after all, these fans tend to accept it as long as it's K-pop.
Besides, even aespa, despite having fewer members, is doing well with one Japanese and one Chinese member. However, due to the Hallyu ban, it isn't easy for the aespa under the Korean corporation to promote in China.
Lee Soo-man's group will be different.
Personally, I'm not a fan because I feel like "SM stans" will use them to stir up controversy, but
I think the group will be able to hold their ground in Korea thanks to these members.
That's why they released a debut song that is quintessentially "SM-style." The nostalgia is going to be intense.