The more economically potent Beijing becomes, the greater the threat to Taiwan. The PRC doesn't believe in democratic values, and actively works against the established international order. Applying sanctions to curtail technology that threatens Taipei is prudent.
As was the case earlier with prospective US sanctions over Hong Kong, this is nothing more than empty bluff and bluster from Washington. Instead of pursuing harmful policies that would hurt Sino-American relations, the US should honor its agreement under the "One China" policy, and work with Beijing on a more constructive, less hegemonic approach toward the world order.