The US government has given itself far reaching powers over such matters. International investments of strategic importance must go through a government committee (CFIUS), which decides for itself what “strategic importance” means. The government can also compel individuals, e.g. it has banned US citizens outside the US from working for Chinese semiconductor firms. A lot of this is done at the executive level, with no legislative oversight and no avenue for recourse by affected parties.

The idea of the US government staying in its lane, away from private sector affairs, is pretty much dead and buried at this point.