The issue seems straightforward to me. The U.S. must, on one hand, lift the illegally imposed restrictions on chip exports (restrictions that were also unlawfully applied to foreign companies like TSMC or ASML) and treat China like any other trade partner. On the other hand, China will allow the export of rare earth materials to U.S. industries and will not impose further restrictions. This is the deal Xi wants. For China, the only acceptable restrictions on U.S. technology exports should be those targeting the military industry, not the civilian sector. The U.S. is acting like a country in complete paranoia, as if it were at war. While China is undoubtedly a formidable economic and industrial competitor, it should not be treated as an enemy—especially since, when it comes down to it, the U.S. does not see its core interests threatened by China.