Most countries have significant rules and regulations around foreign-owned corporations. Countries generally think it's important to their national security to prevent widespread foreign ownership of internal resources. But there is a trade-off where you make reciprocal deals with trusted foreign trade partners to facilitate trade and growth. Everything works smoothly when everyone plays by the same rules.

China has some of the most draconian restrictions on foreign ownership anywhere yet still gets access to foreign markets. Major US corporations are often forced to set up Chinese-majority-owned subsidiaries to operate in China and must cede huge amounts of control to the Chinese government. Time after time, this results in locals ripping off the technology of the foreign company and then the foreign company being replaced by a local company. Look at the long history of US tech startups failing in China.

The point is that whether you think this specific action is right or wrong, it's totally normal tit-for-tat geopolitics. Countries impose tons of restrictions on foreign-owned corporations. You can't even do something as simple as set up an S Corp in the US if you are foreign.