Remember that there are degrees of banning. Slower tokens, dumber models, token caps, KYC for each model consumer, hurting specific companies that are not capitulating in a deal with a Chinese company, etc.
I see absolutely no reason why CPC would choose to kneecap themselves the way the USG just did. Keeping open access to the models means that the whole world will be using Chinese based AI stack going forward. Only a government run by absolute imbeciles would do what the US did.
The tricky part with banning Chinese models is that they're open. It'll be easy to ban access to service providers, but preventing people from running these models on prem is going to be really tough. Like are they going to go after Cursor for example given that their model is based on Kimi?
I very much agree it's going to be a futile endeavour in the end. It kind of reminds me of the time Microsoft tried to get Linux and open source banned when Linux started encroaching on Windows server market. This is going to end the same way.