If US actually bans export of DUV machine to China [1], it could be game over for SMIC though.

1. https://www.bloomberg.com/news/articles/2022-07-05/us-pushin...

raises the interesting question of how best to suppress China's technological development. Are there any existing cases where a country's development can be stunted? (outside colonialism of course, that would be bad)

Far better to have maintained the supply of semiconductors to China which both brings in cash and obviates the need for China to build its own newer, bigger and better semiconductor fabs.

US forward planning has never been very good. Too busy thinking about the next election, or the next earnings report.

yes, this is the integrationist strategy. However this would require trade rather than conflict, so not an option