> It might curb China today, but tomorrow they will have developed their own domestic technology.
You believe it is a short-sighted move, because you only considered those two options, without considering the third one (which is much closer to the current reality than those two).
As others have pointed out, it isn't a choice between "let China develop their own domestic tech on their own by making the US pull out" and "let the US companies grow by developing their stuff in China".
It is a choice between "let China develop their own domestic tech on their own by making the US pull out" and "let China develop their own domestic tech even faster and with a higher chance of success, by allowing them to openly steal the tech developed in China by US companies, all while with China kneecapping and maintaining the de facto power over those US subsidiaries located in China".
You believe it is a short-sighted move, because you only considered those two options, without considering the third one (which is much closer to the current reality than those two).
As others have pointed out, it isn't a choice between "let China develop their own domestic tech on their own by making the US pull out" and "let the US companies grow by developing their stuff in China".
It is a choice between "let China develop their own domestic tech on their own by making the US pull out" and "let China develop their own domestic tech even faster and with a higher chance of success, by allowing them to openly steal the tech developed in China by US companies, all while with China kneecapping and maintaining the de facto power over those US subsidiaries located in China".