
"Most countries and companies are not prepared for the world Peter Zeihan says we're already living in. For decades, America's allies have depended on its might for their economic and physical security. But as a new age of American isolationism dawns, the results will surprise everyone. In Disunited Nations, geopolitical strategist Peter Zeihan presents a series of counterintuitive arguments about the future of a world where trade agreements are coming apart and international institutions are losing their power"
For the most part, free and open trade is beneficial to the Western world order. But I think it's quite straightforward to imagine conditions under which it is not, many of which are currently in effect.
US control of EUV technology is probably the most obvious present one, but limitations on nuclear proliferation are an obvious case where there is no free market. Even selling civilian nuclear technology is controlled.
You may think of it analogously to Free Speech. The dream is complete and total expression. The reality is that if you allow convincing enough liars, your society starts to falter. Consequently, certain kinds of expression are not permitted - notably defamation. Think of it as more a North Star navigation ideal constrained by the trade winds (I suppose the Westerlies would be more relevant, but I couldn't resist the pun).
If you want a couple of reads, I enjoyed A Splendid Exchange about the history of trade, which I followed by the resurgent-though-once-dismissed Zeihan's Disunited Nations (which is more a hypothesis book than a history book).
So, knowing this I would assume they will simply use this system to get access to patents for the chips they need and begin fabrication themselves. This blow slows them down but doesn't stop them. To stop them, you'd need to stop their well oiled espionage machine.
(His first book, Accidental Empire, does a good job introducing his overall PoV, applying it to most of the great civilizations in history starting with ancient Egypt. This book predicted in 2014 that Russia would invade the rest of Ukraine by end of 2021. His next book, Absent Superpower, has the most on fossil fuels.)
https://www.youtube.com/watch?v=GNvdBRjRno8 is a good intro
Disunited Nations is his most recent published book: https://zeihan.com/disunited-nations/ (a new one is coming out in June)
Re: your comment about being in for a bumpy ride: I think his logic is solid in that the bumpy ride is only in relation to the unprecedented post-WWII/post-cold-war era. We know from history that the norm in the world is instability.