Establishing a cutting-edge, all-domestic supply chain would take over a decade and cost well over a trillion dollars in that period. This is why, despite the rhetoric, China’s not actually pursuing an all-domestic supply chain. Beijing recognizes this is simply impossible. China would like a non-U.S. supply chain, but because of America’s heft in the chip industry and the extraterritorial power of its export regulations, a non-American supply chain is also unrealistic, except perhaps in the distant future. What is plausible is for China to reduce its reliance on the United States in certain
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