Gotta tell ya, knowing what we know of China lifting technology like it does, Google is undeniably playing the part of a traitor organization by doing this.
Trump should sequester that technology here.
Software (zeroes and ones) can't be sequestered anywhere. Somebody somewhere orders 101 widgets of catalog number 1100 from some company in China and now China has those ones and zeroes. Most of the building blocks to do AI are open source including Google's own tensorflow. There's also specialized hardware to speed things up which could potentially be restricted, but commodity hardware will work too.
The government has had mixed success at software export restrictions. Back in the 80's and early 90's the encryption software restrictions were a debacle. American companies had to apply for permits to export encryption that they had to import because no American open source was available because that was illegal. Now it's all open source and the Chinese can keep encrypt their transmissions and data just like anyone else (provided they don't make "mistakes").
China also has leapt forward with quantum encryption and even has a quantum communications satellite. AFAIK, we do not. The development of truly autonomous AI will be a lot harder but they can probably do it. Japan tried in the 80's in software factories and failed miserably. Chinese culture is not as rigid as Japanese but they have some challenges too.
In short, trying to export control AI is probably the best way to ensure that the center of AI research will be elsewhere (e.g. Europe).