Personal hot take: China is forbidding its companies from buying Nvidia chips and instead wants to have its industries use China-made chips.
I think a big part of the reason for this is that they want to take over Taiwan and they know that any takeover could likely destroy TSMC and instead of this being a bad thing for them it could actually give them a competitive advantage vs everyone else.
The fact that the US has destroyed relationships with so many allies implies it may not stop a Taiwan invasion when it happens.
I'd say the main reason is probably that they want to insulate themselves from US sanctions, which could come at any time given how unpredictable the US government is lately.
I think a big part of the reason for this is that they want to take over Taiwan and they know that any takeover could likely destroy TSMC and instead of this being a bad thing for them it could actually give them a competitive advantage vs everyone else.
The fact that the US has destroyed relationships with so many allies implies it may not stop a Taiwan invasion when it happens.