Wouldn't it be better if both China and the US stop all the protectionist and control measures and let the best ideas, products, and employees compete among say Intel, Longsoon, AMD, Motorola etc.?
If you let the best chips win, that means US chips win — probably forever, since Chinese companies can't afford to invest the required R&D to catch up unless they get government subsidies.
If you let all the barriers down, multinational teams win. These teams will have engineers from the US, EU, China, Japan, India, and other parts of the world, with many design and fab facilities in different regions and investors from many regions.