It's general research, not specifically research with direct military application. Excerpt from the article:
Between 2017 and 2021, U.S.-China collaborations accounted for 27% of U.S.-based scientists’ high-quality research in nanoscience, for example, but only 13% of China-based scientists’. The gap in telecommunications was even wider, with collaborations accounting for 10% of China’s output but more than 33% of the U.S.’s.
So note, it includes things like nanoscience and telecommunications.
And, sure, "theoretically" any sort of research could lead to eventual indirect military applications, but in practice USA is hurting itself more than hurting China with this. Specially if China gets a military advantage because of its local research, that now won't be shared with USA.