Right now it seems more and more like we will all just end up using Chinese AI. All this regulation is doing is forcing Chinese companies to figure out how to do more with less.
Who cares if Chinese AGI is a year behind OpenAI/Anthropic. At some level, progress will stall and then OpenAI/Anthropic will be on the clock before being undercut out of business on price.
They are probably just positioning now for when that happens and they have to become some kind of regulated utility for US government AI use.
Just another example of having our head up our ass as Americans. Seems like what we are doing will almost guarantee most the world outside the US is using Chinese AI in the future.