Dean W Ball from OpenAI kinda laid down how the “ban” would work. Everyone clowned him over the weekend, but pretty much everything he said had substance. It’ll most likely will go that way - “mention in memos in all gov orgs they’re not supposed to use any AI other than American ones. And let the implications handle everything else, rather than legalese”
As if making something impossibly difficult to comply with is not defact ban. Case in point: OFAC sanctions waivers. Show me a bank in US that directly deals with those and you will quickly end up with rather interesting representation that mimics current AI situation.