ASML shares plunge following reports of Chinese breakthrough in chip manufacturing. China has begun producing advanced chip manufacturing equipment, the very same that made ASML a major player

To be fair: Yes, we do have that pipeline. But we do not have long-term strategic government funding of strategically important industries - especially not Dutch ones. China tries to plan a century ahead (and seems to actually be able to plan a few decades ahead). No western government seems to plan further ahead than an election cycle.

A centralized guaranteed stable government has different opportunities to plan ahead than a government which has to primarily care about being reelected. Our simulation of democracy isn’t free. The massive election theater and lobbying comes with huge price tags (which are mostly invisible to the public until no one can afford to have kids anymore).