In the west and under the law of the country the company operates, yes. But this is ultimately a US protectionist act that does not carry nearly the same weight overseas. Admittedly I have no idea how the US is even remotely able to enforce this - by providing more sanctions/restrictions? They might have power over US companies that sell abroad, but after it’s sold I don’t see how they’re preventing this hardware from being sold again to any other country or company.