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US targets TP-Link with a potential ban on the Chinese routers
(www.theverge.com)
This is a most excellent place for technology news and articles.
Yes, this is what a capitalist, non-centrally-planned economy does. There are multiple hands and the hand of the capitalist class is often the strongest and it will do all the things you mentioned, while the gov't hand is trying to do damage control, but only able to the point where it hurts capitalists.