The weird thing that the glass is never full or empty, on one side Chinese fabs and design houses don't want to have less options but in the other side Chinese bosses of equipment, materials, components and software companies they feel probably a bit thrilled that they have less competition for the same market, the FUD created by US export controls help them to promote the local use of their product and positioning themselves as the saviors, I would say is even a "patriotic marketing", if that is a thing. Companies are more willing to invest in production and R&D if they know that are going to get better returns.
If we look at 2022 financial results of Chinese SME, we can see many of them, including the biggest ones, achieved >50% revenue increase, and Q1 2023 has started great.
This was unbelievable just few years ago and would had never been possible without the US threats. This gives the measure of how much short-sighted US policy is.
Since the 2018 Huawei ban under Trump, and continuation of the same policy by Biden administration (because neocons
ruled US foreign policy then, and
rule it even more now because current president just reads prepared scripts), US has literally enabled a diverse, healthy and strong Chinese SME market out of thin air. Well done US hawks! Chinese government would not have been able to do better.
