Imagine thinking the people you buy your computers from wouldn't be able to engineer them too.
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"Only whites can engineer stuff, them yaller people just ain't smart enough" was probably the rationale.
So Intel and AMD are going to become obsolete?
Not likely. If China advances too fast in this field the west will simply ban Chinese products from their own internal markets. Intel and AMD will lose global market share but the west despite all its big talk of free trade will immediately turn to protectionist policies when its own firms are under threat.
I mean you can already see this happening with Huawei. They just need to claim it's a "national security threat" or whatever.