In many senses there's hubris in the western* view of China accomplishments: most of what western companies have created has had significant contribution by Chinese scientists or manufacturing, without which those companies would have nothing. If you look at the names of AI researchers there's a strong pattern even if some are currently plying their trade in the west.
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* I hate the term "western" because some "westeners" use it to separated what they think are "civilized" from "uncivilized", hence for them LATAM is not "western" even though everything about LATAM countries is western.
It's worked for a very long time for aircraft.
China has been pushing to build its own aircraft for >23 years. It took 14 years for COMAC to get its first regional jet flying commercial flights on a Chinese airline, and 21 years to get a narrow-body plane flying a commercial flight on a Chinese airline.
If for no technical reasons and purely political, COMAC may still be decades away from being able to fly to most of the world.
Likewise, in ~5 years, China may be able to build Chips that are as good as Nvidia after Nvidia's 90% profit margin - i.e. they are 1/10th as good for the price - but since they can buy them for cost - they're they same price for performance and good enough.
If for purely political reasons, China may never be able to export these chips to most of the world - which limits their scale - which makes it harder to make them cost effective compared to Western chips.
Note that this happens at the same time the US is breaking up its own alliances, so as of this writing, there's no such thing as certainty about politics.
This isn't happening. The US is driving a harder bargain with our allies. No one serious thinks anyone is walking away from alliances with the US.
Obviously Wall Street would have preferred purchasing from US-listed/owned arms companies, but from the perspective of a military alliance, having well-armed allies is the main point.
It's really hard to argue with Trump's methods if they led to Europe finally spending on their own defense.
On the contrary, his methods are ridiculous. He could have achieved similar ends without kowtowing to Russia, without squandering the opportunity to further weaken Russia’s military capacity, and so on. Something similar applies to pretty much everything else he’s done. He incurs collateral damage on everything even when it’s completely unnecessary to do so. It’s a definitional example of egregious incompetence.
The fact that they are doing this because they don’t trust the US to honor its commitments is a very different proposition from “maybe it’s for the best”.
And if you’re familiar with world war 1 and 2, you might doubt that significant increase in domestic military production is a wholly good thing.
But point stands: it’s an example of formerly-strong alliance that is no longer trusted.