If Chinese companies are able to just reliably rent the damn GPUs then I really don't see how these restrictions are meant to be effective in the slightest. I guess it makes it less convenient and supply less certain, and retains some optionality for cutting off supply later?

If Alibaba can't bring the chips into China, but can buy a whole bunch in Thailand or Singapore or whereever (or secure exclusive rights via JV partners where relevant) and then just provide them as a service to its customers in China - what is the point? I'm sure many customers would actually prefer such an arrangement.

"what is the point?" There is no point, just zero-sum thinking which isn't compatible with reality.