Restraint becomes kind of a weakness when it's so beneficial for to be restrained. Then it becomes a handcuff that prevents you from taking action against provocation because you keep thinking, not yet, I need to hold on until I am stronger and my position is more favorable. China's biggest advantage is that it is so intelligent, restrained and thinks long term. But it is also its biggest weakness because everyone thinks they are too afraid to take costly actions.
If China was as unhinged as US for example, they would have banned all rare earth export to any country that bans Chip exports. That would have crippled Chip industry of US and Taiwan. It would have been such a huge action that whole world would have taken notice. It also would have deterred US to pursue more Chip sanctions.
What has China banned in response to all the Huawei bans in Europe and Australia? Did they ban Apple and German cars for example? For being a potential spy tool?
They have been extremely restrained because they cannot take these actions without huge costs to its own economy. and there is a fundamental difference between what US and the west wants and what China wants.
China's goal is to get richer and stronger, not to bring US down. But for US, they are already rich, they are already on top. They just want to bring China down. So, they can take actions that is costly for their economy, hoping that it will cost China more and maybe cause a collapse.
This is the fundamental difference between China and the USSR. China wants its own rise, USSR wanted to bring US down.
This is all very good and intelligent from China. But it is also a weakness in the Taiwan scenario. Because Taiwan and US can keep on Salami slicing all they want and China cannot take strong action without causing problems to their long term goal.
Why should they ban Apple and German cars when they are made in China, Apple is completely made in China, while German cars are made in China for the local population and a little for export, those German car makers are usually net positive to China, while Apple is almost like a Chinese company. Apple is de facto, not an American company, it's more of an international company, just like the majority of "American" large corporations. They pay next to nothing in corporate taxes in the US, they use tax havens, and have most of the work done in China, invest the most in China, and probably have only headquarters and a small number of employees left in the US.
Apple pays much more taxes and social spending in China in terms of income taxes, it helps China's supply chain, it pays for factory bills like water, electricity, and others there, and at first, all that investment money goes into China's construction sector when they build their facilities, factories, etc, it's all in China's GDP, from construction materials to furniture later.
It improves China's GDP way more than it improves the US GDP. That's just like you said China should "ban" their own "cash cow" and a company that brings them way more money than the US could ever hope to get from them. It's a really bad example of what to do.
As for the rare earths, I'm not an expert, but I watched some videos on Youtube that say that China already restricts some of those tech exports related to that sector, maybe someone could also explain this. The information is scarce and I would also like to know.