This doesn't seem like much of a threat to China. In fact, it sounds like the US putting the last nail in the coffin of the American games industry. Every major American company is already trying to close, divest from, or move just about every studio to Asia, India, or Eastern Europe. If they block all Chinese investment it'll only hurry along the not too distant day when the only US made games will be an ever declining Fortnite and Microsoft making a Call of Duty propaganda piece fuller and fuller of AI slop every year as numbers dwindle slowly.