US Government's new export controls are wreaking havoc on China's chip industry
While this might inflict short term pain to the chinese chip industry, it gives huge incentives to their indigenous chip industry to develop their own capabilities. It costs a lot of R&amp;D to do so, and when western off-the-shelf chips are available, there&#x27;s no profit motive to make such R&amp;D (which has been CCP funded).<p>So i think this may be a mistake in the very long run - the profits are denied to the western chip makers, and such profits are necessary for continued investment and innovation; and secondarily, sanctions like this will give a massive incentive for indigenous industry development. If successful, their competitiveness is going to be higher than that of the US &amp; west&#x27;s.