This is the old way of doing it, and probably the way the US is going to go with, at the detriment of its own population. - I would posit that since we are talking about digital goods, there is a better way:
Require open source / open weights of any company that used data to it doesn't own to train its models. If chinese companies do not comply, their copyright becomes void in the US, and these models are very easy to copy. Treat advances in architecture as a utility, and let the utilization of those architectures be the market for companies to compete in.
A copyright exemption would just put them at the level of deepseek officially, but they've been working around that anyway in practice. I'm not sure that change would make any difference.
- WIPO copyright exemption
- Anti-China protectionist measures
- Hard-line hardware export control
- Multi-billion dollar government contracts