An economy independent of foreign supplies has been a goal of communist China since its inception. And an active government program for high-end chip production including foundries has been there for a decade.

The problem is: How do you convince a world class chip designer like HiSilicon that it should use a local foundry rather than TSMC? TSMC which is more advanced, more reliable, maybe even cheaper? Without breaking China's commitment to WTO and other agreements that facilitate open trade.

That problem is solved now by the policies of the US.