And what's preventing China from building their own EUV lithography? They can do whatever they want internally regardless of US sanctions. It seems like they're not trying very hard, or are wasting resources on unproductive initiatives.
Sure, I'm aware of that but so what? US sanctions can't prevent China from building their own EUV lithography independent of ASML. Why are they still so backwards?
Of course they are also investing in their lithography equipment, but still, it's an insanely complex set of tools and know-how required that's backed by countless patents and well kept secrets.
Only because China is threatening to take over the country producing those chips and seizing territory in the South China Sea in violation of international law.
If China played nice with America.. there's no problem.