That's ridiculous. How does an invasion of Taiwan tie into any of this semiconductor sphere? Some people need to stop being so dramatic. Chinese gaps in total semi-conductor self reliance and leading the field are no bigger than Japan's or Taiwan's or Netherland's, or South Korea's i.e. leaders in their various fields within semi-conductor industries. Huawei's wellbeing may be a great importance especially in the field of communications technologies (as opposed to semi-conductors) but the real threat is being cut off from supply chains and cut off from being a part of the supply chain not just for semi-conductors but every piece of consumer and military electronic product. That's the real aim of the US. Even if all this is somehow lost (and that's a big freaking margin as unlikely as the USN losing all 10 CBGs), it is but one industry. It may be a big step back but it's like when people retrain or re-educate for different careers when the old one becomes unfeasible.
Dramatic give-uppers are perpetual losers. Those who persist eventually get to the top. No one said there is not going to be adversity. What you are suggesting can cause China to lose not just 10 or so years of work within one industry but decades of development in every field and every effort made to build China up. China needs to learn to take hits like it's always done. The relative passivity from CCP against Huawei attacks is to be expected if anything. What's more valuable than exporting smartphones and telecom tech is the engineers behind these technologies. They can adapt and continue towards taking the lead in every aspect of semi-conductor technology with or without export dollars flowing in for years.
Going all in on some sort of MAD is throwing the baby out with the bathwater. Opportunities are abundant. By all means struggle against those forces and hit back, but why talk about invading Taiwan or banning all US tech products? That's doing a Trump and has an equal effect on China. If you're talking about banning Apple, Chinese consumers will get annoyed but will have to cooperate. After all Google, youtube, Facebook are already banned so it's been done first by China if you think about it that way. Unless you can use the threat to reverse the attacks on Huawei, there would be no point banning Apple. While they are totally overpriced electronics usually bought by wealthy youngsters, the US can use the same moves to hurt China much more. On this point Trump is correct due to the "trade deficit". The only thing Huawei can and should do is adapt with the financial assistance of the CCP by compensating relative financial losses due only to US attacks.