They've made substantial progress in the past 10 years. Sadly, the lack of access to EUVL machines is what's really holding them back from making higher end and more competitive technologies.

They are actively working on making EUVL machines domestically, which would be incredible given ASML is the only organization in the world that currently makes them. Still, it'll probably not be till the 2030s that they actually can get into production with that.

If this is a topic that interests you, GamersNexus did an awesome hour-long deep dive into a couple Chinese chip companies and what they've been making and how they are being unfairly handicapped by the west, and the incredible progress they are making despite that. This is sort of perfect timing for Chinese players to enter the market given Western companies are gouging consumers and losing the good will, pretty much every PC enthusiast in the world would be happy to buy Chinese products over Western ones based strictly on price of performance is up to par.

https://youtu.be/qzfhhAfxK-A