> The ban on selling lithography AND chips to China is massively backfiring
Agreed. We will be screwed once China surpasses us in chip fabs, and they will. The idea that we can get a "durable advantage" by reaching AGI a few years before China is ridiculous. Using that to justify bans that only slow them down a few years at the cost of creating a chip fab juggernaut later is folly.
> Tesla is a trillion dollar company that was created entirely by government subsidies that only continues to exist because of the tariffs
Tesla is not supported by subsidies significantly more than any other car company and less than many including BYD obviously. They also compete directly with BYD without tariff protection worldwide and in China and do well. They are worth a trillion dollars because of the potential of their self-driving software which is far ahead of any other car company's including those in China.
> Tesla is completely dependent on Chinese rare earth exports for its products.
Tesla has rare earth free alternatives. There is no urgent need for them right now but they can switch if necessary.