That's why ban was in quotes. They say it's not allowed, but they would rather take money than disallow the software. It's just how they choose to enforce their laws.
USA doesn't want the software present in Chinese cars (or things like TikTok and networking infra) and "bans"/makes it illegal. Instead of fining the Chinese companies repeatedly, they block it. Perhaps because there are viable alternatives within the country.
So why did the US not ban Meta after Cambridge Analytica scandal or Alphabet after the Google Adx and DV360 preferential treatment scandal?
Also most IoT in the US runs Chinese software and I'm not seeing ban for those.