US has massive IP portfolio advantage, it will lose more. IP intensive sectors account for 1/3 of US GDP and affects as much employment. China is very far away from that and even if she creeps towards or surpass parity, these sectors will employ relatively smaller fraction of total population, i.e. it will affect Chinese society less - these nascent sectors may mature slower or not progress, versus US/west already heavily invested would actively regress. These scenarios have very different ramifications.
It's in both US/west and Chinese interests to maintain general IP racket and deal with sectors of exception. China is obviously not going to respect IP that it is willing to license if said denied via sanctions / geopolitical posturing. Just like military R&D, lack of access = valid rationale to espionage and undermine. West sanctions arms export to China after Tiananmen, now China has massive indigenous military industry. Semiconductors seems no different. Would have been better to draw out reliance on foreign hardware.
It's in both US/west and Chinese interests to maintain general IP racket and deal with sectors of exception. China is obviously not going to respect IP that it is willing to license if said denied via sanctions / geopolitical posturing. Just like military R&D, lack of access = valid rationale to espionage and undermine. West sanctions arms export to China after Tiananmen, now China has massive indigenous military industry. Semiconductors seems no different. Would have been better to draw out reliance on foreign hardware.