China doesn't want service?
If Alibaba is prosecuted or got into other "compliance issues" which are officially not related to this incident, it will be something that other service providers will watch closely.
If a client error gets the service provider into trouble, why would anyone want to provide a service to that client?
This will be a good way for all the big (and probably smaller) guys to stop working with China's government. Who wants to take the risk that some idiot will screw things up and they are held responsible?