Banning/sanctioning companies is in effect a more gradual process of closing the country
What if that sanctioned company made an advancement and China fell behind because it stopped doing business with it?
That's why China doesn't want to ban these companies.
Even in semiconductors, you haven't seen China banning ASML or even banning old ASML IC equipment where there is domestic competition
The US is actually following this "ban" route but it doesn't have any immediate effects to them due to their large size and advantages from the past. However with each sanction, and as China becomes more innovative, the US risks falling behind in sectors where they have banned advanced Chinese companies
I really think you do not understand what I wrote. And/or taking what I said to an extreme. Closing the country is just misunderstanding on your part. It is far from what I am suggesting. China has become strong because it is doing business with everyone.
Now back to what I am saying: When a country bans a Chinese company to intentionally hurt China economically and more importantly to inhibit its technological growth, China has to respond or it will look weak and invite for more of the similar actions. This is *exactly* what happened with Huawei ban. With US orders, New Zealand become the first country to ban Huawei and China did a big nothing which followed by Australia. Again nothing! Then the banning wave went to EU. Many countries were actually on the fence and did not want to ban Huawei at first but then US pressured them. They realized China is doing nothing when they ban Huawei but US would do smt if they were not to ban so they went ahead with the logical choice and banned Huawei (maybe not an officially ban but on the ground Huawei is now banned in France and even in Germany and many other countries). Huawei's handset business died. Other departments are very hard hit, too.
If Chine were to respond to New Zealand and went with a tit for tat respond many countries which were on the fence would probably not banned Huawei. China could have targeted with responses with minimal effect to itself and maximum pain to opposition. Anyhow...
Now, more worryingly, Huawei become just one but many companies banned by USA. These bans will probably expand and taken up by other countries, too.
As I said China is incredibly docile. It is almost mind boggling to me.
