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Correction, I didn't just mean chips made in the US but also chips that license US technology. This was the reason ARM, a British company had to suspend their relationship with HiSilicon, Huawei's chip manufacturer. [0]

[0]: https://www.theverge.com/2019/5/22/18635326/huawei-arm-chip-...

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There's no guarantee that the chinese government would respect US copyright and patent law in a split up. It's just as likely the payments to US firms would end, and manufacture would continue.

If China takes that action the US can cancel China's bonds.

I don't think either side wants to take such drastic action though.

If the US cancels Chinas bonds the US looses any trust, i.e. everyone has to assume that their bonds are worthless. No sane person/company would lend the US money in that scenario.

And if China nationalizes US technology nobody will trust it either. No sane company would invest there in that scenario. I think whoever takes drastic action first would lose trust of third parties. Anyway, I don't think it's going to go that far, too much collateral damage.

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