Second, why should “the world” in general care about the plans from some unhinged regional policymakers from a country that bet on isolationism?

Because they're afraid of getting fines issued against them from the state of California. $2,500 to $7,500. Depending on where your project is based, enforcement and collection of that fine might be difficult and unlikely ... but the chances of actually having to pay that fine probably aren't zero. And for a lot of open source projects even one instance of getting hit with a fine like that would far exceed their budget and force them to close down.