In terms of design/development, I would suggest this pecking order:
Caveat: China is strong in AI chip ambitions and volume of development, but weak in cutting-edge execution due to sanctions.
You don’t think China has lots of moles in those Taiwan companies?
I think you are right in the matter of chip design.
But it is insufficient to lead into the future if you are not also leading in production and failing to lead so much you are relying on others for that production. And that is not even the whole of it when you consider the intellectual property theft of designs sent to others for production.