I expect it's going likely to be used to train some Chinese AI model. The race to AGI is in progress. IMO: "ideas" (code included) should be freely usable by anyone, including the people I might disagree with. But I understand the fear it induces to think that an authoritarian government will get access to AGI before a democratic one. That said I'm not entirely convinced the US is a democratic government..
PS: I'm french, and my gov is soon to be controlled by fascist pigs if it's not already, so I'm not judging...
They probably wanted to get rid of you. So instead of firing you, they imposed stupid rules to makes you leave on your own.