There was debate about whether to “buy from abroad or to make ourselves” in China. The debate ceased to exist in recent years. Right now, one of the headlines in HN is “US wants ASML to stop servicing China-owned chip equipment”. [1] I can see why that happened.

[1]: https://news.ycombinator.com/item?id=39629443

What will this mean for us in the middle of this? More competition? More diverse options or maybe split up the ecosystem we have now even further?

I'm guessing more competition and options if you are not in US or China. If you are though, most likely a lot of high tech fields will have no-US or no-China policy encouraged or mandated by the respective governments.

The new cold war is gaining momentum