It is very unrealistic if the US expect China to capitulate like Japan. For one thing, China's market is humongous. China is also more self reliant and at the center of Eurasia trade. I'm not worry about China if that is what the US aim for.

What I'm more worry about is if China, in its pursuit of self reliant, turn inward, and decouple not only from the US, but also from other countries, like EU, Japan, South Korea, etc. Even if China can make every thing by itself, it isn't a guarantee that China will have the best tech. Without the best tech, it is difficult to conquer the global market. More importantly, by making every thing by yourself, you may turn off other countries who expect a slice of Chinese market. If that happen, then the US goal of isolating China will be achieved. Only by embedding yourself in global market can China survive this trade war. That's why I'm glad that Xi doubled down on globalization and opening the market. Clearly Xi understood the threat. But the threat of decoupling from every one accidentally is always there, and sometimes it could happen not only because of trade issue, but also politics, like the one China have with India and Australia, and to some degree with Canada. I can understand why China has to take hard ball position against them, but it still has damaging consequences to China and benefiting the US.

When the US blockaded Huawei from using google services, I think it has more profound effect than just banning semiconductor sales to Huawei. One day, Huawei will probably be able to solve the semiconductor issue, but it will be tougher to solve the software issue, because globally people are using google services. Even if Huawei can make a similar apps, it is still a tough sell to other countries who got used to google services.

To be honest, I'm pretty piss off with Alibaba Tencent and Baidu. This three tech champ in China are too comfortable in their seat in China, and surrendering the global and especially Asian market to the US tech. I still remember when Asian market were dominated by Line or Kakao, but there were still plenty of opening for WeChat to enter. Instead it was Whatsapp that entered the Asian market and kicking Line and Kakao. WeChat has also shot itself on the foot by making it very difficult for customers outside China to register. Meanwhile Alipay surely took its sweet time in expanding abroad, so much that now most Asian countries already have their own "Alipay" champions. The only way Alipay can expand in Asia today if it buy out the local competitors, which I have no doubt, will certainly raise plenty of eyebrows among Asian gov. If only they have aggressively expanded abroad at that time, Huawei might have allies today. But not every thing is lost for Huawei. The European gov are also worry about US tech dominance in their countries and seek to propel their own champions. These are potential allies for Huawei.