Earlier quoted context omitted.
I doubt it. China is not there yet w.r.t. semiconductor independence. There are people who say, buy AMD, but AMD is also subject to US laws... So what will happen instead? From what I've seen so far, China is careful with counterattacking US because they know the US is stronger. I think the govt will just issue an angry statement but do nothing concrete internationally, while continuing their domestic efforts of semi…
Alibaba recently announced new CPU they developed based on ARM: https://www.tomshardware.com/news/alibaba-unveils-128-core-s...
Furthermore, what we're talking about here is replacing x86. There is indeed a joint venture with AMD, but at the end of the day x86 is still US intellectual property and thus susceptible to sanctions.
It would be a different matter if they decide to replace x86 wholesale with something else, e.g. ARM or RISC-V. That is certainly more feasible today than a decade ago, with Android being a major platform and no longer being constrained to just Windows. But it's probably still a large amount of effort.