China won't have an issue with it.
"We should violate medical privacy laws on an enormous scale because China" Okay buddy.
Being first is not the same as being happy.
I think it was AIDS and people not wanting to be outed that changed things.
But whatever the reason, we now have HIPAA and it adds a huge amount of complexity to the management of medical records, and a huge amount of complexity to any research that needs access to a broad spectrum of medical case histories (such as training AI). Other countries don't have these concerns, and will outcompete the US on developing these capabilities.
People keep claiming that other countries will out compete us in medical research and it keeps not happening.