I think they squandered that recently. We will see with Biden but the Trump administration basically encouraged Brexit and repeatedly adopted anti-
EU positions in key geopolitical issues (Syria, NATO, Iran, Israel, and Ukraine). These things come with a cost and the EU will try to rectify this. Enhancing Chinas CPU tech by a few generations might be worth it if it can advance EU interests and ensure future good-faith from a supposed ally.
Enhancing China’s CPU tech even a single generation is in the EU’s interest in exactly 0 alternate universes, along with this one.
As long as the US has the world’s only reserve currency and as long as the EU economy - especially the productive bit in the North - is built on exporting to the all-powerful US consumer, the EU has very little leverage in its affairs with the US.