Place the chinese labs on the entities list. That stops any legitimate company using them and probably makes HF take them down. Sure there will be torrents but the laws for doing business with a sanctioned entity bite much harder than the laws around copyright infringement.
Ironically, this–a nascent industry and budding industrial cluster–is the textbook case for deploying tariffs. America tariffs American use of Chinese models and pays that back as a tax credit to American developers.