It definitely mirrors the kinds of restrictions China puts on US companies with joint ventures, censorship of sensitive topics, and keeping data on Chinese servers.

However, I think why this feels unsettling even if it just mirrors what China's done is because up to now there was a sense that the US has a stronger economy, society, and culture than China, and these restrictions China put on US companies reflected their weakness and insecurity. But now the US is doing what China's done for decades. It shatters that aura of American superiority, implies that China's been right all along on matters of national security, and foreshadows a future where previously sacred assumptions of American democracy become obsoleted by new technology. I'm reminded of hand weavers smashing machine looms during the dawn of the industrial revolution.