Correct. The correct response is to massively build out the west's capabilities, and drive down china's market cornering potential.
the problem is that the western countries seem hell bent on doing this the most grift-heavy ways possible, sabotaging every effort, and then wondering why none of those efforts actually produced useful chipfabs--- (at least on one side of the coin)
While simultaneously nodding cheekily to the above, siphoning off every last dollar of grift, purposefully refusing to create local chipfabs (because western workers are too expensive! OUR PROFITS!), and pretending that technological gatekeeping and effective monopolies on supplies are in any tangible way feasible. (On the other.)
China's advancements might be small, but they are meaningful.
Ours? Look big on paper, but mostly just waste time.
I seem to remember a fable about a tortoise and a rabbit written by some greek guy.... Maybe it's my imagination.