Yes, so the US need allow ASML sell to China.
Ideally, yes.
The thing is such actions from govt.'s usually start with the right intent and in a very limited scope... but, with time, both gets traded away for having more political control over entire ecosystem, thereby, allowing corruption to creep-in, and on a more extreme level, illegal arrests and account freezes.
The issue is always the human nature: power corrupts, and absolute power corrupts absolutely.
Didn’t the Dutch government take control of China-own chip maker as well?