Right, but the whitespace between instructions wasn’t whitespace at all but white text on white background instructions to poison the copy-paste.
Also the people who are using chatGPT to write the whole paper are probably not double-checking the pasted prompt. Some will, sure, but this isnt supposed to find all of them its supposed to catch some with a basically-0% false positive rate.
Countries willing to pass on a US patent to China stop getting the chips (or, in this case, chip-making jobs, realistically, but that still hurts)
Also Taiwan doesn’t wanna help China and even if a US sanction was just an excuse to hurt China and get away with it they’d probably do it.
Edit: in this case, this chip is “foreign-produced items […] that are the direct product of U.S. technology or software”, according to the article. I feel it was implied but clarity is always good. US technology, used with permission in a Taiwanese good, and that permission could be retracted.