I am designing an open source audiophile DAC as a hobby. Is there any licenses that permits improving and "responsible" commercialize, but can prevent those Shenzhen companies from simply copy and paste my design? I really want my design to end up in good hands, not a company with only money in mind.
I see this desire a lot, and there are so many wrong assumptions in it.
If you don't want to let people use your design for any purpose, you do not want Open Source, full stop.
If you want to restrict use, you need a closed license. You also need a license that has a strong legal basis, otherwise it is completely pointless. You cannot copyright hardware designs, so none of the copyright based licenses are any use. You could get a patent on the hardware design, if it is novel and inventive.
Even if you have a legally sound license
if it is commercial valuable it will still get ripped off. And not only by "dodgy" Chinese companies, even western companies rip off IP. So practically you will need to keep ideas as secret as possible, use NDAs etc, as well as have a war chest for legal fights.
But I really wonder, is anyone's hobby project worth trying to protect? Is it just dog in the manger? I published an Open Source hardware design, to my surprise it was quickly copied by a Chinese manufacturer. I don't get a cent from them, they have never contacted me. I am fine with that, it is what I wanted to happen.
If it is commercially valuable, set up a company and sell it. If not - publish it and let people do what they want with it. If you just want "look at how clever I am" self promotion, publish a project log somewhere without details.
tldr; If you publish as Open Source, you lose control. If you want to retain control, don't publish.