Huawei has the 7nm/5nm it needs.
Before, China used to import 400-500 billion dollars of chips from the US, Taiwan, South Korea each year.
Now, all those profits will go to the semiconductor companies from Mainland China, and it will be a desvastating blow to the western companies.
Without those profits, the western companies no longer has the capability to research the advanced chips, and China will dominate the semiconductor industry hence the high-tech industry.
The US is screwed by putting all in to strangle China in a chip war.