You're saying that it was a threat to the incumbents who then sent their lobbyists to demand a ban in the name of national security? It's plausible.

I'd be pretty confident that it's not. There have been lots of companies that show up in the space, and they haven't been clobbered by other companies via the regulatory process. Those haven't been owned out of China. Those companies aren't gonna care about the ownership of a competitor.

And the US went to extreme measures to ensure that China didn't control 5G infrastructure via Huawei, considered it security-critical, and the competitors there are out of Europe, Ericsson and Nokia. And the US did some local restrictions on Huawei phones (and two other state-owned Chinese phone companies) being sold to military members at bases, but not on other Chinese competitors.

And there are a number of prior restrictions that the US has placed on companies owned out of China company. For example, I know at one point a Chinese holding company bought a solar farm directly overlooking a US naval weapons testing facility and the US mandated that the owners divest.

Like, agree with them or not, I think that it's pretty safe to say that the US government has very real security concerns specifically about Chinese companies.

I mean, I can believe that Google is probably enthusiastic (is "Youtube Shorts" the closest equivalent? Maybe there's someone else who does similar things), but I don't buy that Google fabricated this. If that were the case, you'd expect to see a bunch of prior China-related restrictions, but would expect to see a lot of Google-related restrictions, but what one actually sees is the opposite.