US bans technology exports for certain things too. Try and export a reactor design. Recently, we are seeing more investment in semiconductor manufacturing and other electronic away from China. China is not just going to sit back if they have an opportunity to secure their position in this industry. This action shouldn't be surprising. Expect more attempts at protectionism as different industries attempt to diversify manufacturing out of China, not China to just well up and take the massive economic hit that this would mean for them.
