> As China's military becomes closer and closer to Western standards, supply chain integration and Western business in China will dry up in response.
You and parent are saying different things.
The US has historically had no problem trading with and building up any economy with cash (your point).
But once that economy reaches parity with the US, if they have serious ideological / political differences, the US is quick to lock down legal trade (parent's point).
This observation (in general about the West) was the origin of the "hide our capacities and bide our time" component of Deng Xiaoping's 1990 strategy that Xi (foolishly and prematurely, imho) threw out the window.
The US was a crucial partner in building up the nazi and soviet manufacturing capabilities.
Public US companies care more about the next quarter way more then ant nationalist loyalties.