> If you think the solution here is going to be open source Chinese models and / or running on your own hardware, think again.

This logic is flawed. China had no incentive to release SOTA models to the world in the first place when OpenAI were milking everyone with closed source paid models. What changes now? Nothing. In fact, this is even more incentive for them to capture marketshare and dependence on Chinese models as the world will simply just use alternatives. Not bow down to restrictions. If your logic were correct that people would just comply, then the tons of VPN services wouldn't have a market in the first place.