The argument is - these models costs hundreds of billions to develop - to BOTH US and China. China is giving them for free despite not making financial sense because they want to weaken US's tech firms ability to compete - because China sees AI dominance as critical for their national security.
The US also sees AI dominance as critical for their national security, and relies on a market economy and non-state-owned labs. This means that these frontier labs are truly susceptible to "predatory pricing" (economic term for a competitor selling at a loss to eliminate you), which is illegal in the US and any other free market economy exactly because of its implications on market efficiency.
I hate it just as much as the next guy, but the fact the discussion here ignores the fact that these concerns and dynamics are real just lower the discussion level instead of actually discussing potential solutions.
With that said, what I'm worried about is that the government solution will be far more hostile than some semi-ban on open models. An example of an even worse scenario, they could take over frontier labs and restrict access to everyone in the public (which might still not solve espionage).