There is not even jurisdiction over Chinese companies, because they don't sell their LLM subscribtions, unlike US companies, and those comitted much more severe violations in getting their training material than a ToS violation or two (Anthropic already found guilty).

edit: I don't see this as legal argument against the ban, more like a justification for why basically no moral person is gonna side with OpenAI and Anthropic on this. US gov can try and ban as many weights as they want, I expect that to be similarly effective as banning numbers was in the past (i.e. not).

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