I recall that happening in the 90's with a few different types of software due to U.S. software patents and corporate legal departments. VLC hasn't always been the go-to Linux multimedia application, for example.
[1] The infrastructure part is easy, the giving away access/bandwidth for free part is hard.
Crypto didn't die when it was export-restricted, and that stuff is really complicated.
So you're right, you can't pipe them out through fiber channel but you don't need to. You just need to fund them wherever you want them.
That's the thing, though. The physical location of the developers and the legal nexus of the companies are different things. Any sovereign government can exert power over the actions of companies that operate elsewhere, so long as they have anything in their own jurisdiction that can be gripped and squeezed -- a "nexus". Sometimes sovereign nations will even create laws that are "extra-territorial", laws they expect to be obeyed beyond their own borders, even if only enforceable once you are within those borders.
If all your developers live in Europe, but you sell to US companies too, guess what? The US can push you around. Do you want to do business with a bank with any US footprint whatsoever, guess what? The US can push you around. Do your executives travel to the US? Guess what? etc etc etc.
The US is not a special case here: the use of local and international legal and financial pressure to achieve policy goals outside one's own borders is common. However the US is a superpower, has far more levers to push on, far more heft to push them with and far lesser immediate consequences for doing so. The EU and China are probably its only rivals in this kind of economic realpolitik.
But if Bhutan tried to do this? We wouldn't even hear about it.
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
The bulwark defending the bulwark is the population.
Hope that works out for you. :-(
(I'd wager there'll be a few more Snowden types asking for asylum outside the US before this is all over.)
> We emphasize the narrowness of our First Amendment holding. We do not hold that all software is expressive. Much of it surely is not ... We hold merely that because the prepublication licensing regime challenged here applies directly to scientific expression, vests boundless discretion in government officials, and lacks adequate procedural safeguards, it constitutes an impermissible prior restraint on speech.
The division of the open source world into the “US part” and the “Chinese part” would be a roughly 50% cut in the efficiency of the FOSS ecosystem, and is on the table given the developments he describes.