> Not selling them chips virtually guarantees that they will learn how to make their own, very quickly. The end result of that is much, much worse for the USA.
Are you proposing we guarantee access to avoid potential access?
It make sense. China had X amount of demand. If the demand is met they are satisfied, if the demand remains unmet they seek alternatives. That seeking of alternatives primarily means huge amounts of money, that would go to Nvidia, going to direct competitors of Nvidia to "chip" away at their competitive advantage.
Keeping them dependent upon you guarantees that they never surpass you and that you can milk the relationship for all its worth economically and geopolitically. When they have their own fabs spun up it's possible that you are the one eventually stuck with inferior tech, and you lose all sort of revenue + leverage you'd otherwise have from the relationship.