European companies step up efforts to decouple from China

We'd get further faster if the strategic interest was met at some cost, but we kept trade doors open. Dumping is a statement to economic disparities. "you can make it too cheaply" only goes so far. (not all cheap goods are either inferior or founded on slave labour. Sometimes, the input and supply cost is simply better for some other nation state)

The over-reliance is a real threat. So it's sensible to have a national/regional supply path to these goods, but it flows both ways: China will tool up some competitor to ASML because being told "you can't buy our litho machines" is not a weapon which ends in "oh, oh well we'll stop at 200nm chips then" it simply encourages them to try harder.

I don't think the ban on EUV chip factory equipment is designed by the western powers to make China improve their own tooling. But it will.

Same with cars, batteries, tinned peaches, red wine, Maybe not brie. I think brie is safe for a while. They've only really been eating fancy cheeses for a decade or two, it takes longer than that to learn how to make Brie doesn't it?

Protectionism is critical to nurture domestic industries who cannot currently compete with foreign imports, but the price will be paid by consumers via higher cost of living. This will then manifest in the political realm, with right wing nativists the most obvious beneficiaries.