But assumes that american companies having that power is not. That's the red scare part.
It's not a red scare if it is true. And it's not a red scare because China isn't being targeted here because they are Communist - they are being targeted because they are a geopolitical adversary. Russia would be treated in the same manner if some killer app came out of there, and they aren't Communist.
You can't miss that if you're even half smart or don't have an agenda.