It's not short sighted. China recognizes that America has a stranglehold on its future and is working hard to free themselves from western IP regime. They will build their own, regardless. In fact, they've been working on it for a while.

All that the isolation did was slow them down. It was smart.

Frankly, I don't like the Chinese government or their industry, but they deserve the same rights to self-determination that the west has enjoyed for decades. They are investing heavily in that capability. I don't blame them at all.