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U.S. chip giant Micron to invest $600 million in China plant despite Beijing crackdown
(www.japantimes.co.jp)
This isn't unusual. TSMC and Foxconn, both Taiwanese companies, are heavily invested in China as well.
No one serious is implying or saying the US or the West should be completely economically uninvolved with China. Without trade there is much less reason or room for diplomacy.
But no one is building cutting edge fabs there either.