Long term consequences: China outperforms Nvidia, by producing cheaper, faster chips at a large scale, by getting inspired by the IP but using their own production lines. Through sanctions, the irony is that the west removed the incentive for China to respect IP laws. Well done. If they can solve the lithography/ASML issue by getting access to it, then they will be forced to win.
I don't know much about GPUs, but is there really any value in IP? I can learn to write HDL code all day long, but turning it into real transistors is the hard part. Code is worth nothing nowadays with AI.
Competition's software stack have to be good enough that it is worth migrating over and I think till we get some kind of cross vendor API for that it won't happen for a while