Between $5-10T of the US economy is subject to export controls. Nobody disputes that Mythos is dual-use technology, which means it has been export controlled since the day it was created.

Companies are responsible for demonstrating criteria to export (for example) a nerfed version (Fable) of an export controlled item (Mythos)

Nothing here is novel, unusual, capricious, or … fascisistic.

We saw what happened with banning nvidia flagship compute GPU exports to China; it just spurred them to develop a domestic semiconductor industry while still importing black market GPUs at a minor markup. The US would do well to keep the world dependent on American products that are under the jurisdiction of the US government, and can therefore be regulated or killswitched. All this will do is allow China to have flagship model capabilities without being subject to the US at all.