I believe in trade and inter dependency to avoid military conflicts. That's what the US has been selling the world since 1950.
Should we tell Chinese how to behave in their house? Dunno, how would we like Chinese telling us how to behave at home. We'd give them the finger and do what we do best, shoot one another in the name of freedom.
Tech transfer is the rule if you want to make millions from cheap Chinese labor. Don't want it? Don't do business in China! It's like we telling Chinese companies to follow our accounting rules..Don't like it? Don't list in the US.
Yes, their encroaching authoritarianism is a concern. We have some responsibility with it, just like we encouraged Ukraine to seek democracy. But I'm no fan of China's or anyone else's bullying. Their hierarchical culture and face saving obsession coupled with their sudden dominant position in the world is not reassuring at all. Like teens who suddenly realize their strength and capacity to instill fear in people. Their agressive posturing and lack of humility may lead us down a dangerous road.
One of the best things China ever did for their people beyond opening their markets was the local industry partnership/"forced tech transfer" requirement. All I'm saying is the US grew overly dependent on their labor and non-existent IP protections while ignoring their military and influence growth. Just like we've done on Saudi oil. I just found it weird that you drew an analogy of China being dependent on US/western chips but ignored the much broader US dependency on Chinese wares.
As far as telling others what to do? Besides the US, no clearer example than China really; Tibet, Uyghurs, early HK takeover, Taiwan, predatory lending infra projects worldwide, south China sea and neighbors, etc, etc..
I'd rather we bullied dictatorships and authoritarian regimes rather than the other way around tbh.
The timing and muted Chinese response is interesting though. My guess is the WH sought this opportunity of economic uncertainty (which China's feeling as well) to lessen retaliatory sanctions ("they can't afford it").

