IMO that ignores the decades of investment the Chinese government has made in its semiconductor industry. It’s literally been written into their five year plans at the highest level with tons of government pressure to buy domestic when possible across industries. With the biggest captive consumer market on the planet, there is no universe in which China doesn’t get its own cutting edge chip industry. They have been determined to do it since at least the 90s and have invested hundreds of billions in a concerted effort to pull it off.