[DannyBee]

The chinese government is not kneecapping them, it's carefully forcing them to fall in line, and doing so in a way that won't hurt its own interests.

Remember that in China, the government is the kingmaker. In the US/EU, the companies are the kingmakers. China is simply reminding some of it's companies that this is the case.

As for the last, good luck. You have a coherent long term strategy that they are willing to sacrifice short term for on one side, and a completely incoherent mess that changes every 4-6 years on the US/EU side.

After they are finished kneecapping the US/EU companies, they will need these chinese companies more than china needs them. Not exactly a great negotiating position - there will come a point where you say "sell", and they say "nah, that's okay, we're good".

[Nasrudith]

No it is beyond just compliance - Xi is outright starting to Mao it up and dusting off the communist claptrap when it is useful to him, and spouting crap about China's future being in physical good manufacturing. He is doing the narcicistic dictator trick of fucking over nice things as potential remote threats to his power.