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Yes it should be free , it's only use while using the steam china client. It should be empty as it seems you're from germany as suggest ( GER ) near your speudo.
What kind of data do you have inside it ? i easily imagine that with this weight ,it's surelly your games.
If it's the case there is an option under steam to move games from another folder under the steam client parameters menu/download/and a button in this windows will open a new page where you can select the location of your games and move them where you want( steam folder button)
I have multiple games in that folder like:
Phasmophobia
CSGO
Paint the Town Red...
I tried launching one of the games (Phasmophobia) in that folder after writing
that message and it was a very old version of Phasmophobia.
The folder is completly full of old and outdated games.
Those are not my games I currently have installed and they are just using up way too much space.
Weird that Steam saved old version in the steamchina folder
Still pretty weird of Steam
May be a bad action done on your side i guess
Glad you solved your issue