US tech companies betting on China to sustain their growth are foolish. China doesn't need an excuse to favor its internal tech companies over external ones. It already does favor its own tech companies, and its own industries across any sector in which it can compete. China has already crippled US tech company growth within their borders. Any "retaliation" here is just spin, they are doing it anyway.

The reason regulation is required for this is because private companies, being purely proft-driven, won't. It's a state matter.