@voyager1 and why didn't they do that? bro from my understanding the gov't will hold and development strategic industry and let the other sector of the economy run free, Its Socialism with Chinese characteristic. By letting the Chinese private and some state enterprises to compete with foreigners it will hone their skills and productivity. Not only that they will set the standard and with economic of scale the foreign company will comply and that is a victory itself.Come on man, lets not play games. We both know that if China Gov wants this to happen it Will happen.
They can just pass a law that on industries where China is sanctioned, it can limit foreign IP to enter the Chinese market on these sanctioned industries. Then they can say "We respect our WTO commitments, and this is a defencive measure against sanctions " yada, yada
There are plenty of valid excuses to pass this law to ban foreign IP if the industry is sanctioned by these countries.