I do not understand all of a sudden everyone is freaking out about the Federal Register Entity List.
The list grew significantly way more in the past than recently. Why the sudden interest, weeping and gnashing of teeth?
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My guess would be because there has been a surge in American xenophobia, and an expected outcome of that might be abuse of things like the FREL to irrationally discriminate against foreign entities.
The sudden shift of politics against globalization is more likely a root cause. The xenophobia was there, a little, in the background but it's been stoked into a bonfire by the politics/media press.
Meanwhile, you can't tell me the camera gimbal on a drone is any kind of national security problem. It's more like a trade leverage problem.