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China’s aim is independence in strategic sectors, while happily fostering the dependence of other countries upon china.
There are different ways to encourage local development that could also harm western profits, and china is using this opportunity to demonstrate the tools at its disposal.
It’s a warning shot before a full blown trade war, and it’s highly questionable whether the US would come out “on top” (less worse off than the other players) if that happens, especially as the US is working hard to alienate its traditional political allies.