> Doesn’t China create advanced electronics?

It creates advanced electronics in the sense that it assembles them. It does not manufacture advanced or even mid-grade chips though which is the crucial point. That’s all Taiwan, Korea, Japan, USA.

I’m not sure that 7nm is not good enough to be called “mid-grade”, but SMIC definitely has the capability of manufacturing chips good enough to get to space.

Advanced stuff isn't necessary for space, most rockets/aerospace worked fine with 1960s tech. Obviously nicer chips can be useful, but it's not like TSMC/Samsung are necessary conditions for getting to the moon or making an ICBM.

Rad hardened chips use really large node sizes

SMIC makes 7nm chips, which is considered high-end. It's not the highest of the high end, but it's not far from that, and it's definitely considered high-end.

Mostly assembly with some fabrication. Most semiconductor manufacturing is in Korea and Taiwan, with assembly in China, India, Malaysia, etc. The majority of the design work happens outside of China as well.