It may look like a powerful strike now. By cutting off supplies of American semiconductors and other high tech products, he effectively removes the biggest advantage of American hi-tech products -- the first mover advantage [investopedia.com] -- and forces Chinese companies, who otherwise have imported billions of intellectual properties and semiconductor, to develop and use domestic products even if those are inferior. In a few years, their domestic products will then be able to survive in the market, improve and eventually surpass the American competitor. No doubt that Chinese netizens joking that Donald Trump being their comrade [quora.com].

(Sarcasm) Who would have thought that a nation like China, with nearly the same area of the United states and access to a similar set of Natural Resources however with 10x the population. Would just sit back and Take the US demands without some other sort of fall back method.

China is a tough customer, they always have been. They are big and they know it. And unlike many of the smaller countries, they can stand up to the United States. They may not be as powerful, but they are powerful enough to give the US a bloody nose.

We are letting perfect be the enemy of progress. Yes China does Suck in a lot of ways, They have the resources to dominate US in all areas, however their government is too controlling to allow for risker actions that causes more progress. As well their Human Rights issues are really bad too, making people afraid to do risks. But they are still big and strong, and we don't necessarily need a fight with them, because otherwise both will lose. China may Lose more, however they will get satisfaction on getting their punches in, and even if the US loses less, we are still losing.