How will that protect it?

The laws they are arguing for are not going to protect anything, they essentially are waging war on open models and since most open models that are 'pretty good' to 'good enough' hail from China they have chosen to play the China-fear card.

But they won't be able to stop anybody from doing this if they want to continue to operate Claude as a business going forward, and that is assuming that is what is actually happening. Chinese labs have been extremely open about their developments, they have shipped working models to the likes of me, which is more than I can say about Anthropic. On top of that they don't sermonize about how they are going to improve the world and never mind the accidental destruction, that's just collateral damage.