China did it early and made growing their domestic industry a priority. Europe has not. This is like trying to close the gate after the horse has already escaped.
So not just EU, but any other region in the world, like Africa, South America, Central Asia should just give up and not try to make a business that could disrupt existing giants?
They can, but OP's point is that a ban on US tech on its own will do nothing to produce a local Silicon Valley. It needs to go hand in hand with a massive push toward local entrepreneurial support, especially in places like Europe where the government exercises more control through legislation
I don’t think you really need to incentivize businesses. If people want to start a business, they’re going to start one, regardless of whatever carrot you throw in front of them. “I’d love to start a business and make a profit, but the government just isn’t giving me enough incentive!” - said nobody ever.
Europe is regularly growing new tech startups, even online tech. The main problem is US vulture capital swooping in and buying it up as soon as it outgrows the local market, followed by everyone pretending it was developed in the US.