Huawei Mate 60 Pro sold out instantly, showing China's self-innovation amid the U.S. sanctions. Prof. John Gong warns the U.S.'s "small yard, high fence" strategy is hurting its own firms, and 
Jeffrey Towson adds the U.S. politically weaponizes the tech supply chain. 

John Gong: If you look at the recently released financials from the major semiconductor companies, including Qualcomm and Intel. They are all in big trouble. I mean, as a matter of fact, these companies are laying off people.

So, there are a lot of questions about whether this strategy, the so-called "small yard, high fence strategy," is going to be effective in ultimately slowing down China's semiconductor business.

It's hurting American companies. Let's face it. There's no doubt about it.

And I think the dilemma is that it's not only hurting American businesses. It's not going to slow down China's technological advancement in semiconductors. On the contrary, it actually provides more impetus for developing even more indigenous technologies, even faster and better.

So, I think this strategy is very much in doubt, even in Washington.

But let me say, in the short run, Jake Sullivan is not going to admit defeat here. He's going to double down, and he's going to stick to his policy.

Jeffrey Towson: This is the U.S. government attempting to politically weaponize the technology supply chain, not just saying: Hey, you're an American company. You can't do this.

They're telling foreign companies what they can do with other foreign companies. 

It was effective, tactically, in the short term. It was a big move. Strategically, in the long term, they have convinced every company in the world: Do not have a single source supplier for critical technology because that is now a risk.

Every major company in China, in Asia, South Korea, and a lot of countries is convinced you cannot be dependent on the U.S. for single source critical technology because they will use it.