Definitely a surprise
Kick in the balls is right! Well that's going to accelerate CPU development in China, the Chinese government isn't going to take this lying down!
I suspect this is a watershed moment, where the whole Chinese population will decide that the Americans are ruthless and untrustworthy.
The Japanese attacked Pearl Harbour because the US was denying it access to oil (as one theory goes). This decision really feels similar. Eventually the US will find itself isolated, they're pissing off so many countries. But before that many dangerous things can happen....