Look at the bigger picture. All the Chinese have to do is to keep making progress and in ten years, when they have sixth gen planes, three or four more nuclear carriers etc. plus an economy significantly larger then the U.S., they can dictate the terms. So RE is a chip that they can use to get what they want at the current moment to help them buy time til they get there. I imagine that Trump may agree to something that could not be aired publicly and need to manage the optics. For example, it may look like that the Dutch and ASML, on their own , defies Trump and suddenly had the guts to sell the best EUV machine to China after Trump meets with Xi. Some exports of RE will suddenly be approved. Actually, I am surprised that Burma was on a ban list of countries not allowed to come to the U.S. This pushes them straight into the arms of the Chinese. Coincidence? Also Trump speak of Chinese reunification was quite odd. All the bans of Chinese students, jet engines, EDA tools, I think are there to manage the optics to hide deals where Trump had to give up something unacceptable to the American public. These restrictions will quietly be lifted later.
One thing that is likely is that the Chinese, even if they are willing to release the RE again, will release them in quantities that won't allow the West to build up an inventory, just enough for use. That way they can tighten control again at a later date. Keep them hungry.
The fact that Trump is going to China means that maybe in private, Trump agreed to many of their demands.
