> And more importantly, companies would be more risk averse on such a thing when they can just buy a similar product with no risk.

Not to mention that as enterprise demand for newly "illegal" LLMs dries up, so will the incentive for Chinese labs to shovel money into building them. I doubt Chinese labs are getting rich off providing inference to American business, but loosing them would be a permanent dent, along with rendering moot the perhaps more nefarious incentives Chinese labs have to release model weights in the first place.