How the US didn’t see this coming is laughable.
Seems like they ended up victims of their own propaganda in the end where they assumed that Chinese companies weren’t capable of developing their own tech and were just stealing from the brilliant US companies.
The paradox of the enemy: They are endlessly threatening to our existence while being endlessly incompetent and inferior to us in every possible way.
The biggest issue is mass scale in-house chip making independent of US and friends. That needs to happen. Everything else is secondary.
China is already starting to produce small batches of 5nm chips, so now it’s just a matter of scaling up production. I expect that within a few years China will start pulling ahead of the west in terms of chip production.