I would say, we shouldn't allow the sale of a US manufacturer of hard drives to China. Too much sensitive stuff in there, as the story says. That's a touch decision to come to, because while clearly government should prohibit the sale of any and all goods to certain clear enemies, it's not entirely clear whether China is an "enemy" of the US.
Some people, myself included, might consider them not a present threat, but a future one. To help prevent them from being a formidable future threat, I wouldn't sell them anything but low-tech consumer goods (which I'm not even sure they'd buy). I certainly wouldn't have allowed the sale of IBM's PC division to Lenovo, and I'm still bitter over Clintons sale of missile technology to China (there's a word I'd use to describe that action, but I won't).
Overall, I'd vote no to the sale. If I had a vote, that is. Which I would, incidentally, if we had a rational political system.