Since you are from this domain:
1. Why will they master it? Because they dedicate their industrial strategy and hence resources to it like they did in the other technological domains and flood the market?
2. Is the only way out a strict decoupling from the Chinese market in these domains? Or would it be a strategy that involves protecting domestic industries with other levers?
I understand that advanced chip making has been done, and is an engineering problem. By generations I assume you mean cohorts.
However, one must not forget the subsidy lever China is using to distort competitive advantage on a financial level. As long as we do not level the playing field in a strategic sense, we will loose on the market long term.
In theory you could gain the knowledge to design an early 1990s CPU at the logic gate level by reading some books and doing a bit of research, on the other hand actually manufacturing such IC would take considerably more effort.
Design and manufacturing are both engineering problems. Throw enough people and money at the problem and it will get done eventually. What we're banking on in the West is by the time China catches up to where we are now we'll be on to the next thing. Always one step ahead. What I'm saying is, unless we refocus our society on STEM, those days are numbered.
They will surpass us on chips just like they surpassed us on EVs. The leading edge of chip design is very complex so it will just take more time than EVs. But it is inevitable.
Even if China could get their hands on all the NVIDIA GPUs they wanted they would still try to make their own as fast as possible.