So the argument against AI regulations crippling R&D is that China is currently far behind and also faces their own weird gov pressures? That's a big gamble, applying very-long term regulations (as they always are long term) to a short term window betting on predictions of a non-technical board member.
There's far more to the world than China on top of that and importantly developments happen both inside and outside of the scope of regulatory oversight (usually only heavily commercialized products face scrutiny) and China itself will eventually catch up to the average - progress is rarely a non-stop hockey stick, it plateaus. LLMs might already be hitting a wall https://twitter.com/HamelHusain/status/1725655686913392933)
The Chinese are experts at copying and stealing Western tech. They don't have to be on the frontier to catch up to a crippled US and then continue development at a faster pace, and as we've seen repeatedly in history regulations stick around for decades after their utility has long past. They are not levers that go up and down, they go in one direction and maybe after many many years of damage they might be adjusted, but usually after 10 starts/stops and half-baked non-solutions papered on as real solutions - if at all.