Right but the market doesn’t have any foresight to say “an adversary is going to take advantage of this dependence the market has created here and strangle us with it.” The “market” like water just flows toward “it’s cheaper to do it this way.”

The market doesn’t care if US democracy triumphs over (or even survives) Chinese state managed capitalism. But I think a lot of us have skin in the game on this one.

China has long recognized the strategic importance of this kind of thinking, see the massive subsidies they provide many of their industries to create the very dependencies you’re crediting as a natural market efficiency.