Any government work can be done via MOU with a US subsidiary staffed by Americans.
This kind of capricious, unexplained control is bullsh*t.
I’m not saying that I want companies to have to go offshore or that that would be a good thing. Just that you’ve got no leverage if your corporate structure can be destroyed on a whim. This goes for any company reliant on a whimsical executive branch.
While there could still be fights over the technology and the company, a tech provider would still be able to serve other customers and have more leverage.