I believe it is very much a two-way ban, depending on the specific chips [0].
[0]: https://www.aljazeera.com/economy/2025/9/17/china-bans-tech-...
IIRC they ban companies that got funding from china's government. i.e. they don't want their investment in AI to go to NVIDIA but to local chipmakers
China banned companies from buying the made-for-China 6000D.
I'm sure they have knowledge of it being backdoored or underpowered/buggy.