>How does it sound now?

It sounds logical and sound? As a US citizen, I (a) agree that we shouldn't be allowing government employees to use AI services from adversary foreign governments and (b) that other countries shouldn't be allowing their government employees to use AI services from adversary foreign governments (which the US should be considered for plenty of countries).

>Both nations may as well just say it - "we're banning it because they're our closest competitor".

I guess we're just ignoring the national security implications lol

If I were China, I would ban US models from being used by my government for the same reasons.

The difference is that local US companies have agency to refuse government overreach while Chinese companies are weaker in this regard. Chinese companies are more vulnerable to its govts pressure.