Thing is the US knew this was coming. China telegraphed it very clearly with earlier restrictions. Clearly other than some cost increases it doesn’t bother the US or is seen as simply part of the cost of decoupling.
I don’t see any levers that aren’t the nuclear option in terms of self harm to China’s economy that they can pull to pump the brakes on the tech decoupling, sanctions, embargo, suppression thing the US has going.
At this rate the US will begin making it a crime for anyone with specialized technical knowledge to go to work in China because there’s increasingly little in terms of product they can sanction. Wouldn’t be shocked to see researchers in fields like AI who collaborate in any way with Chinese universities or companies facing increased harassment by feds.