It's not the ROC specifically; it's just that any company that uses US technology can't sell to Huawei, or likely China in the future. It's all the world, not specific to any place. The problem is that it's China's old disease that it does not control all of its own territories, a disease that festered during China's weakest time but one that can be cured with its return to power.
I guess I'll say this again: China and America have fundamentally different strategies in this fight. America uses the old lion strategy, which it will pull out trick after trick from its tool box of weapons that it has accumulated over the years it reigned as king and it will use these to try to stop China from progressing. Traditionally, America has strengths and China has weaknesses (like its inability to control ROC and some extent, HK) so America wants to fight in the realm of a traditional time. But China, on the other hand, uses the young lion strategy, which is to dodge attacks thrown at it so it can focus on its own growth. This is the one area, the area of the future, that the old lion cannot match the young lion, so the young lion doesn't want to dwell and fight in the past but it wants to grow and bring about its more powerful future as quickly as possible. The young lion simply doesn't have as many tools and tricks as the old lion because it hasn't had the time to create them yet. Because of these differences, the fight will not be direct blow-for-blow. It will be each side using the things that work best for it, and that's why China's not fighting America's fight by throwing punches. That's America's realm; it just wants to grow and bring America into China's future where it cannot compete.
The least impressive punishment is some immediate little tit-for-tat; that's what small people revel in. That's what small people call strength. The biggest punishment of all for the US would be seeing China turn the semiconductor and lithography fields from its weakness into its strength in a few short years. Trump will never admit it because he's the type of guy who could leave a fight unconscious in a stretcher to a standing foe and still say he won after he wakes up in the hospital, but every tech group over the world and US will know that Trump's administration spurred China's semiconductor innovation. That's the only true victory worth having.
