Is it competition if the only way it can exist is if there are no other players, especially from far more technically competent countries like the US and China?

Yep, and it can even be healthy for local markets. See what how US is protecting themselves against China ;)

Monopoly is competition. War is peace. Freedom is slavery.

Who's having a monopoly except the companies being whapped with regulation? ;)

If you can't keep up the pretense of a free market, you get sanctioned. The EU can regulate US companies out of the EU but it won't end well for either faction.

There's a reason the EU barely has any successful tech companies over the past two decades. And yet, people will still say "the EU has done nothing wrong!"

Tell that to the literal trillions of euros in growth the EU regulated away into oblivion by stamping out any hope for an emerging tech industry.