The federal government foreign policy is giving full bright scholarships to the best of the best Chinese students so that they get PhDs fully paid at the best US tech universities. And then kicking them out for loosing a lottery 3 times and sending them back to China so that they have no choice but working in products and companies that directly compete to the US.
Selling or not selling tech to China is the least of the US problems.
This is one of those cases where you can sue all you want, but it's working as designed.