It should be remembered that Intel is selling these chips manufactured in Israel to China. And I am certain they are not of any special military significance. They are produced in Israel because it costs less to do so, and there are good technicians and engineers that help to improve both the design and manufacturing of these IC's. Lots of the US's NATO allies are doing business with China. How can you not do business with what is now the biggest economy in the world? The main issue is that they not be allowed to steal intellectual property or military secrets. But computer chips are used in everything these days including cars, simple computers, smartphones, and very much else as well. It all depends on the kind of chips we're talking about.