I don't understand this reasoning; the leverage is that China will ban the entire company from doing business in China, how would this law help anything? I als

I don't understand this reasoning; the leverage is that China will ban the entire company from doing business in China, how would this law help anything? I also don't think US laws applies in China, so if a company wants to do business in China, it has to follow Chinese regulations. Just like a company doing business in the US having the follow US regulations.