Ah, the ever present American Exceptionalism. China really does not care what happens within the borders of the US, at least as far as stopping them developing their own models.

Make laws, make policy, ban them from US markets. It won't stop China doing whatever the hell they want. Like SpaceX developed reusable rockets and China thought "That's a good idea" and now they have their own reusable rockets.

They will do that with AI too, and fast. Having your head in the sand just exposes your rear end, and you've removed your ability to see the predator coming...