>attacking the top tech firms and industries with regulation will only push them out to more favorable grounds give new room for industries to form in more favorable grounds other than U.S

Let them go, someone else will step in. Yes it will be inefficient as someone else ramps up, but companies that are only here to repeatedly hold the country hostage to get out of sensible regulations are a threat to the population's security. China will eventually abuse its population to the breaking point.