A ban on AI looks nothing like a ban on almost every other technology that has come before it.

You're really suggesting the following bans. A ban on computer science and algorithms. A ban on any device that can play games that aren't encrypted or DRM locked from an approval authority. A ban on any kind of unregulated computing without government approval and licensing.

>China makes the vast majority of their progress by distilling US models

Eh, this is a budgetary decision, not a technological one. Why spend billions when the US can spend billions and you can spend millions. China more than has the power to do what we're doing if they chose to do so, their biggest limitation is speed of making new compute, not money or brains.