Yeah, this is bordering on ridiculous. But, if any of this is contemplated, you can bet it's also being contemplated in China, Russia and everywhere else.
The standard response should be: "would you want us to do the same for foreign governments?"
But what makes the "would have to" follow, let alone be enforceable?
ANY sovereign government can pass a bill saying the same thing about any maker of any software, and they might even have long-arm statutes via agreements between them. It's not like Google doesn't have subsidiaries in China, and it's not like they're not restricted in China.
The standard response should be: "would you want us to do the same for foreign governments?"