To Europeans at least, this is a big deal, especially because of cybersecurity capabilities.
It is of vital strateigic importance for Europe (and really the rest of the world too) that there are non-American, non-Chinese options for AI.
What makes you think the rest of the world trusts Europe more than the Chinese?
Non-American maybe, but non-Chinese is likely impractical. We might not want their APIs, but we can't compete on energy and labour for training, even if it means buying licenses to host the weights (which CADA encourages). From China's perspective, what's the case for baking weights they can't sell? Some Chinese models already don't even have the Taiwan politics stuff baked in, those filters are only in their APIs.
I realised after writing this, the EU as is uncomfortably often the case, may be the real forcing function for what happens with US policy irrespective of the media campaigns we're presently seeing. Here's hoping for a steady trickle of stale ChatGPT weights leaking from EU infra providers in the long term.