There is not even jurisdiction over Chinese companies, because they don't sell their LLM subscribtions, unlike US companies, and those comitted much more severe violations in getting their training material than a ToS violation or two (Anthropic already found guilty).
edit: I don't see this as legal argument against the ban, more like a justification for why basically no moral person is gonna side with OpenAI and Anthropic on this. US gov can try and ban as many weights as they want, I expect that to be similarly effective as banning numbers was in the past (i.e. not).
This is false. They do sell LLM subscriptions. Many also release _most_ of their models as open weights.
And the utility argument is also very shaky. The proposed punishment for foreign interests stealing "US data" is that other Americans now aren't allowed to benefit from that, while the rest of the world can
Which is why making an honour-based argument to said thieves is silly.
The better arguments are the ones made in the article. Open weights increase competition and thus AI availability in the U.S. economy.