There was a recent Semi Analysis post that China is not in fact doing anything to slow down frontier model development so I doubt this is relevant.
https://newsletter.semianalysis.com/p/beijing-will-not-pace-...
> Think its pretty clear they violated the terms of their employment, otherwise they would be suing (California labor laws are very employee friendly)
Not that employee friendly. In California, as in most of the US, it’s entirely legal to fire someone because you’ve subjectively decided they’re untrustworthy. It can be risky to do so without a clear paper trail, because it may be easy for them to argue it was a pretext for a protected reason, but it’s lawful.