The US made a big gamble with the "Axis of Evil" in 2001, seems like they are making another huge gamble for 2022 and beyond. Over the past 20-40 years, the world super powa (us, china, russia) was in a "dance." Each country would do things to annoy each other by maybe bumping into each other to scratch the paint or leave a dent, but the US seem to have recently try to bump both Russia and China off a cliff.
China has minimal connections with US, especially when it comes to cutting edge areas. Where America excels at is that they provide more commercial price friendly components for some local companies.
The ball is in US' court right now if they can even keep their higher tech running in the face of the newest sanctions. And even if they can maintain productivity, what matters is that China will keep expanding the lead at a pace which America couldn't keep up with even before the sanctions.
Challenging a bigger economy is a guaranteed death sentence unless the smaller party can somehow infiltrate the bigger party and convince them to give up. America may have counted using subterfuge, but Xi Jinping removed any vestiges of rot in the system they could have used. The failure to predict that has costed America greatly and will cost them much more the more they escalate and brings Chinese opinion about America into the negatives. China can outspend, outbuild and blot out anything America tries to do, as long as China remains united in destroying the American threat.
Remember during the pandemic, China rendered massive aid to America - continued access to Chinese pharms, without which a majority of American patients would go without antibiotics, painkillers, ORs in America would not be openable, mortality would enormously increase, both for covid and non covid cases.
The public in China went all in on fighting the virus and half heartedly, if even that, on fighting America. That will change when American rhetoric escalates.