Comment by SpicyLemonZest

Actively handicapping a product that's otherwise capable qualifies. If you discover that the military is using your capacitors to make rocket launchers, so you introduce a manufacturing defect that will cause them to fail at high heat, you're a supply chain risk and can be rightfully designated as such.

The converse does not qualify. If I advertise a chemical with an admixture that prevents it from being used to make explosives, the military has absolutely no right to demand that I produce a version of that chemical without the admixture. Selling a product which can't do what the DoD wants does not make me a supply chain risk, no matter how easy it would be for me to make a different product that's fit for their purpose.