What I'm saying reduces down to, "the scale of effect that humans are able to have on a system, will eventually lead to problems of that scale on a system".
If you can dictate that all industries within a country must do some thing, that will eventually cause problems with all industries within the country.
Culture doesn't really have anything to do with it. Whether the person making that dictation is Xi or Trump or some random bureaucrat doesn't really have anything to do with it.
There are thousands of bureaucratic orgs and corporations making their own calls, deepseek and qwen were both trained on nvidia hardware, while several chip startups and SMIC ramp up.
The nature of those calls is influenced by culture. If you have a culture of MBAs, you get Intel's actions over the last 15 years.
You're commenting from the post-reagan consensus, which inevitably leads to Intel's current situation. But it doesn't have to be like that, America had a different consensus from 1930-1970.
(BTW, deepseek was trained on nvidia.)
Xi doesn't personally set every industrial policy in China, its a ton of people all over the country. Culture.