If China can survive — and even start to thrive without ASML and TMSC, then have no doubt that should push come to shove Europe will be able to run a mail server and some office tools.
They’re just hedging that American politics will stop licking the car battery.
Europe is not a political entity or an organisation. Who exactly will do it? The EU, some EU country, Russia, the UK, Switzerland, some cooperative agreement...?
China is bigger, and a lot more ambitious, and is willing to put resources into it.
European countries (except maybe Russia!), in the EU and outside, are very complacent.
Push has come to shove and has been shoving for nearly a decade. Europeans continue to be incapable. As a Canadian I wish they were not, but they are.
EU politicians are just too dependent on keeping the status quo of the last decade. The status quo is how they got to their position so they have no incentive to change anything (Starmer, Merz, Marcon, Von der Lyen. Yuck). By the time they finally get the shove they need to rapidly decouple, e.g. when America invades The Hague* to rescue Netanyahu from war crimes charges, it will be when they're already on the edge of the proverbial cliff.
*: https://www.hrw.org/news/2002/08/03/us-hague-invasion-act-be...