That’s naive beyond belief. The US government doesn’t want to stop China from spying, it wants to make sure that it does all the spying. And given that US has far more influence on the west than China, that’s a much worse situation to be in.

Shouldn’t we let the RESTRICT act be the enemy of good?

Exactly, the government that has agency over them is the one people should be worrying about, amazing how this simple idea seems to escape so many.