Yes. It's the best thing happened for the Chinese semiconductor ecosystem. All those Chinese phones, networking equipment etc can't risk using the suppliers in the West as it can be shut down with a decree. Now Huawei, Xiaomi etc are funding so many start-ups and they are buying their products even if it's slightly worse than the state-of-the-art. The next generation of chips are going to be state-of-the-art for sure as there's not much of a gap.

Chinese companies used to open design offices in the West to keep connected to the talent here. In the last 6 months they're massively divesting. This means EEs in China will be valued even more. Add this to 80% of the research in the field happening in Chinese universities now (as opposed to less than 10% 20 years ago), they have everything nicely aligned.

They have been pushing for independence for a while now but sanctions and tarrifs will push it all to go faster. And it is a big mistake: the west has some type of misplaced arrogance that china wont catch up that fast because asml, nvidia etc but I would not be so sure. Like more said here: a disadvantage is authoritarian but thats also an advantage: Xi can just command everyone to go one way and 'defeat the west'. And seems he is doing exactly that.