Technology

This is exactly why they want Taiwan

The US wants to destabilize every country as long as destabilization means hatred of non US dominance institutions. It is not critical to China to take Taiwan by force, Taiwanese polling supports status quo at 80%, and so they don't want to be come Ukraine puppet. Taiwan's current parliament will not support stupid for next 4 years. Still, the danger of breaking US-China trade, or failing in extreme ultimatums against Europe, is ignoring of US export controls to the avantage of EU and Taiwan tech.

China does have a delete America program but it could license CUDA, and Nvidia driver compatibility for purposes of giving it away to its GPU industry. Main problems listed in OP is Nvidia's mature ecosystem that affects AMD as well. There is a "delete America" program in China that is forced by US short sightedness. It is catching up. Drivers will get stable, and yields improve. But by tariffing energy, the US becomes a terrible place to build datacenters. Solar is perfectly fine for 24/7 datacenters in any country with decent grid because the bottleneck is daytime/peak transmission, and a small battery is enough to get to low night demand that can use grid peaker resources and spare transmission capacity. Placing datacenters in non US colony countries is path to utilizing them for entire world's AI/computing needs, as alluded to in OP.

The shortsighted US "national security" measures look stupider the more time passes without war on China, and "delete America" progresses. US hasn't been serious about national security in last 40 years. Just in funneling the most money possible to oligarchy with little military value returned. Naval warfare/force projection is dead strategy. China's wealth (PPP) advantage and military production rate/value is well ahead of US, and as a manufacturing power, can be increased as well. Its aims of economic abundance are clearly more humanist than US approach, and clearly more welcome to anyone/nation not corrupt and evil.

OP issues may be real, but if China were forced to improve the stability/ecosystem of domestic options, they can right now. China has banned Nvidia (and intel/amd) in certain sectors this week. Bosch and other German Auto sectors are investing huge in China manufacturing, and to compete in Chinese supply chain. Chinese EV, self driving, and robotics are well ahead of west even with sanctions, so that sector seems safe. Betting on China dominance 5-10 years from now is a bet you can give 10:1 odds on. Nuclear annihilation means you won't have to pay. Time is on China's side.