At this point I don't think any of that matters. Companies like Huawei are already making domestic chips and the latest GLM was trained entirely without using any Nvidia chips. DeepSeek has also been moving to Chinese chips last I read. All the US attempts to slow China down have backfired so far because China recognizes the strategic importance of this tech and they're putting state level resources behind it. In the short term, China will still be able to source the tech it needs through intermediaries, but in a few years they're going to be entirely self sufficient.

There's also the flip side here which is that China controls a lot of key inputs like rare earths which they have been quietly cutting off. It doesn't matter if the US can design better chips if they can't actually produce them.