My biggest problem is that it’s too narrowly targeted.
I have worked for several US businesses with global footprints and working with China (and some other countries) required whole or part ownership of the business by entities within that nation. So we partnered with businesses in China to set up and operate our infra, and had to manage everything through contracts.
Further, Chinese government officials would show up unannounced and plug shit into our networks, and required access to our encryption keys and accounts databases and employee & customer lists etc. We had to build independent systems just for China to prevent sharing information about non-China based customers and employees. Where we couldn’t do that, we had to build filtered replication “diodes” to prevent data leakage.
China and other countries do far worse to us than just requiring local ownership of businesses; and if they feel that is in their national interest, why can’t we return the favor when we feel it’s in our interest?