The effort to limit China's technological advancement is only one piece of a larger effort to ostracize both Russia and China economically. The US dollar is massively over-indebted, but the better-managed currencies and economies of both Russia and China are relatively debt-free. Eventually, there are going to be significant changes in world-wide capital flows investing in Russian and Chinese ventures, as well as world-wide changes in currency valuations.
Western banking interests (at the level of the Rothschilds) is going to suffer immensely as these inevitable world-wide financial changes come to be. So, the Zionist US State Department (discussion below) supported Neo-Nazis in their overthrow of the legitimately elected democratic government in Ukraine in 2014, and the US chose the new leaders and provided weapons, munitions and funds to support the coup government's attacks for eight years against ethnic Russian Ukrainians in eastern Ukraine who refused to be ruled over by the coup government. Russia immediately secured its military base in Crimea and reintegrated Crimea into Russia by a democratic vote.
Western sanctions soon followed. Not war, but only economic sanctions, and that was the whole point of the US State Department creating the Russia-Ukraine conflict so that the West would have cause to rally the West to isolate Russia economically. More sanctions have followed after Russian intervened eight years later on behalf of the ethnic Russians being attacked in Ukraine.
Likewise, the pending conflict between China and Taiwan is being stoked by the US to create cause to isolate China economically.
The US effort to create a bubble around the West where the debts of the US dollar would just be business as usual without any comparisons to the ruble or yuan failed when Saudi Arabia refused to increase energy supplies and lower prices to make up for the banned supplies from Russia.
Nonetheless, the show must go on, and we see continued efforts to ostracize both Russia and China economically, and chips are just one sector of that effort. The only other alternative is WW III so that the West can write off its debts.
All the senior staff at the US State Department are said to be either Jewish or have Jewish spouses (per a calmly-worded Internet post). My guess is that these anomalous personnel promotions (and firings) started happening after Henry Kissinger became the US Secretary of State. In other words, all the senior staff at the US State Department are double-agents for Israel and, by extension, for Jewish banking interests. As further evidence, A large number of mid-level and lower-level staff at the US State Department have signed a letter complaining that the senior staff are all pro-Israel and that they are not reporting war crimes being committed by Israel.
I suspect that Israel and Jewish banking interests are trying to use the US State Department to lead the US into starting WW III by attacking Iran; and, the senior staff at the US State Department don't seem to know how to negotiate a ceasefire. Russia has a base in Iran, so do the math.
The war against Chinese chip-making ability is only a small part of a much larger potential war.