It's not like those American companies were only stealing form Americans. Maybe you could argue about utility, but morally I don't see any ground to stand on

And the utility argument is also very shaky. The proposed punishment for foreign interests stealing "US data" is that other Americans now aren't allowed to benefit from that, while the rest of the world can

There isn’t an argument for banning Chinese or open-weight models. I’m just saying OP’s moralistic outrage take is about the weakest one you can come up with against it.