It's antithetical to the US's purported objective of promoting a more liberalized market economy in China (though I suppose that was never something this administration really cared about).
You're missing the context behind why that policy was in place. A big part of that was the hope that China would democratize in the process. Clearly that has not happened so it makes sense to pull the plug. No point giving out free concessions to trade partners that aren't willing to reciprocate.
Foreign companies were able to earn large returns in China because China's tariffs went from ~40% to ~3%, restrictions on foreign investment were reduced or eliminated in most sectors, big state-owned enterprises were split up and forced to operate like regular companies that have to earn a profit, IP courts were created, along with many other changes large and small.
The sudden cries that China took advantage of the West are just completely out of touch with reality.
https://www.reuters.com/article/us-china-bytedance/china-ord...
I wouldn't have believed it was possible even 5 years ago in the U.S. but now who knows.
The kicker is at the end:
“He thought that by making a promise to follow international standards or rules he would be able to escape the regulation or the kind of pressure from the American government,” said Ding. “But I think now he realizes he might have been wrong and that if he doesn’t want to sell the company, the only one who can help him is the Chinese government -- which is what he’s tried to avoid the past few years.”
It's the same with Huawei, if Huawei wasn't a government owned or backed company before, after the U.S. tried to kneecap it, it sure as hell will become one if only to survive.