Just like Europeans, you need to understand international law. It's not law like law within a country. It's a warning. US software firms were never obligated to comply with anything. If you don't comply, you create an enemy. You comply based on your judgement of that enemies' ability, determination and level of creativity that they will use to punish you for noncompliance.

Do you want to do any business at all there? Do you have any vendors there? Do your owners own anything else that does business there? Do you have any investors that live there? Do your kids go to college there? Do you have to fly over or through it, ever?

It's leverage against leverage.