I guess the lowest common denominator in our current system is..drum-roll..trade. Everybody profits from fair trade. Also, if China doesn't get these AI hardware, they will be forced to create their own (yes, they already have some, as you pointed out). They may already have long term plans for own hw+sw, with the same or better power efficiency at best, but this new NV hw infusion may slow them down, which may be even the whole point of selling it again, but I'm not sure about that.
The Trump administration just made China's AI development efforts much easier by allowing exports of high-end Nvidia chips. It still wants a cut of the profits, though, while China is not so certain it wants Nvidia chips.
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