It's game over for China's entire tech sector if the US went "nuclear" and ban all general computing chips like in the case of a Taiwan conflict. China will always get squeezed on this in any type of negotiation. For China to have leverage and retain being the worlds tech factory, they need to popularize local tech stack. Tech may still be relative young in developing countries, so the next 5-10 year is the time for China to dump low cost computer/tablets/smartphones with a chinese development stack to get these people to start using it and making apps.
Ford motors had to shutdown their U.S. automotive manufacturing plants due to global semiconductor supply shortage, which costs Ford billions and billions of dollars.
Do you think it's that simple that US can simply "ban all computing chips" without a huge swath of US economy getting destroyed in the process?
That's called mutual assured destruction.