I guess the question then becomes: what happens if some future US government pressures Amazon to revoke the license. Unless and until there's a good answer to that, it'd still be better to develop something locally.
Sort of. AWS operates the China regions more or less like any other region, with oversight by the Chinese holding companies.
The EUSC will be more restricted, similar to GovCloud. Only EU citizens can access/operate it.
Specific example: an alarm fires for your service. If it’s in China, anyone on the team can go look at the logs. If it’s in GovCloud, only teammates who are American can look at the logs. In the EUSC, only Europeans can.
I think this is already done in some cases altough the political reliability has not yet been tested.