I don't know that it's actually prohibited. There is no Chinese telecommunications equipment allowed, no Huawei or Bytedance, but nothing prohibiting software merely being developed in China, not yet at least.

Although I did just check what regions AWS bedrock support Deepseek and their govcloud regions do not, so that's a good reason not to use it. Still, on prem on a segmented network, following CMMC, probably permissable