Every country limits trade, in general, but especially to countries that are aggressively working against their interest and trying to become a peer competitor when it comes to technology.
How does China “aggressively work” against the US? And what’s wrong with becoming a “peer competitor” when it comes to technology? Wasn’t that the essence of a free market?
Just replace technology with militar capcity, and at the end of the day, the projection of global power.
It's not really about tech, but about what such tech enables. Look at AI / LLMs, think how adversaries having those and you not having them might affect any future disinformation wars, etc