Honestly the US gov is playing with fire here. This sort of behavior will only lead to global corporations avoiding doing important business in the US. This is clearly a step in that direction.
Also it's easier to control local companies because you have a jurisdiction over them. Look at europe, they don't have any major high tech companies, so they can only choose which threats and risks they want to deal with us or chinese. Can't avoid it, unless they drop particular tech at all.
You have to wonder where some HN posters get educated.