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But surely that should be ASML's choice?

ASML machines include a large amount of technology from the US, and so can be controlled under US export control laws.

A country is free to develop all those technologies locally and not face US export control, but that's such a difficult task that nobody has achieved it.

ASML is a Dutch company that doesn't export from the US

That doesn't matter. If they want to export TO the US they are subject to US export laws. The US has a history of their economical and political power forcing companies that have no business with the US to do their bidding to stay in business. Just look at the Iran sanctions.

_Every_ country is subject to US technology transfer laws if they want to retain access to the global banking system.

The US can simply put an offending company on a black list and every financial institution will drop them.

History has demonstrated that public companies aren’t going to make the right choice from a Western POV.

Short term gain always beats strategic defeat.

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