No way the USG didn't expect China to respond. China's moves were telegraphed way in advance, plus USG already released many notices previously like list of critical minerals.
Given that China hadn't really responded to the previous technology sanctions that the US has placed in the past 5 years, the US government could be forgiven for thinking this would continue.
But it does look like China has finally developed a workable domestic DUV semiconductor fabrication line. Now it's a case of scaling up and mass producing. And to think this was all driven by US tech sanctions, because Chinese companies were previously happy to buy foreign. But now they have no choice but to support local equipment makers, and go through the pain and difficulty to develope an alternative. This will also likely become the better, preferred choice, given some time.
Anyway, back on topic
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