> The United States just did this to China by limiting Huawei’s ability to outsource its in-house chip designs for manufacture by Taiwan Semiconductor Manufacturing Company (TSMC), a Taiwanese chip foundry. If negotiations fail, China may respond and escalate, via one of many agile strategic responses short of war, perhaps succeeding in coercing the foundry to stop making chips for American companies – turning the tables on the United States.
How would the PRC succeed in convincing TSMC to stop producing chips for the US, short of military action? The PRC is Taiwan's primary military adversary, and the US is Taiwan's primary military supplier and ally. IIRC, TSMC even recently agreed to build a foundry on US soil (which is kinda surprising, since that reduces the incentive of the US to defend Taiwan in a military conflict with the PRC).
How would the PRC succeed in convincing TSMC to stop producing chips for the US, short of military action? The PRC is Taiwan's primary military adversary, and the US is Taiwan's primary military supplier and ally. IIRC, TSMC even recently agreed to build a foundry on US soil (which is kinda surprising, since that reduces the incentive of the US to defend Taiwan in a military conflict with the PRC).