The entire Chinese high-tech economy would be dead without American chips, so why doesn’t the United States just cut off all of China’s chip supply?

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That’s exactly what the US did before!

The United States has been halting the supply of weaponry to China since 1990. Consequently, China has independently developed a wide array of advanced military equipment, including main battle tanks (MBTs), missiles, fighters, cruisers, submarines, aircraft carriers etc. etc. Some of these are now among the top-ranked in the world.
The result: U.S. media and politicians have been criticizing China for its weaponry modinizations, day and night.

And this was also a byproduct of US cutoff. The China space station. Now we humans have two space stations in the sky.

This time, the U.S. has effectively cut off China from acquiring high-end chips. While this will cause a temporary setback, it won’t last long, as China has achieved full self-sufficiency in producing 28nm chips and partial self-sufficiency for 14nm chips. The progress is inevitable; once a certain technological threshold is reached, further advancements are just a matter of time.
The outcome is clear: China’s chip industry will become fully self-sufficient.

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