The only outcome of this would be that all commercial image/video AI creation tools are Chinese, but illegal to directly use in the West, so everyone wanting to

The only outcome of this would be that all commercial image/video AI creation tools are Chinese, but illegal to directly use in the West, so everyone wanting to do this legally has to pay contractors in China instead that semi-unofficially use these tools, but pretend not to. There's no putting the genie back into the bottle.