Just in one particular country. That hurts their labs, but there are ~190 other countries in the world for Chinese to sell their products to, just like they do with their cars.

And businesses from these other countries would happily switch to Chinese. From security perspective both Chinese and US espionage is equally bad, so why care if it all comes down to money and performance.

Also Chinese smartphones. Huawei was about 12-18 months from becoming the biggest smartphone manufacturer in the world a few years ago. If it would have been allowed to sell its phones freely in the US I'm fairly sure Apple would have been closer to Nokia than to current day Apple.

That's what OP was saying, I think, noting that running them locally won't be a solution.