Citizens were and are free to use the technology (cryptography and every other export-controlled item); your "power bill is suspicious, go to jail" FUD doesn't really track with history.
> Any company providing the models will be deemed a threat to national security.
Any company providing specifically-controlled models to foreigners would hypothetically be prosecuted.
There's a famous poem called "First They Came" about how slippery this slope can be in a heated political climate.
I don't believe for a second this ends with "foreigners", this is about setting up infrastructure for controlling the technology. Foreigners are just the current excuse.
Note that TFA mentions they are supposedly hand-picking access to whoever they want, based on whatever criteria they want, already.