We cannot dismiss that, brother.
Seems to me that is the order in which this thing is done, how to build up the Chinese IC industry.
Chinese companies paying through the nose to American companies for that IP on that chip. Now Chinese companies have their own designs and do not have to pay American companies anymore.
They just need a fab. Eventually those fabs will be built in China too.
Do the designing of cutting edge chips first.
Suppose they did it the other way around, built the cutting edge fab first. Since they have a fab but has no chip design, not sure they are going to do? Also, building a fab goes into the billions, which designing a chip does not.
If the Americans want to escalate this tech war further, then escalate, but everyone should be prepared for the consequences down the road.
I think China at this stage of the game, has no worries.