The stupidity of American lawmakers. Any rule like this and you can say goodbye to any company operating in China. Companies like Volkswagen will have their assets in China nationalised. Say goodbye to 60% of your worldwide sales overnight.
Link to the Bloomberg article:
Then there's the fact that China could easily impose export sanctions of their own, which would hurt European countries far more. Imagine losing access to cheap Chinese consumer goods.
There's nothing most countries can do except be nice to China, unless they are prepared for a significant drop in living standards.