From what I’ve read, China has simply purchased plans and equipment from Russia, improved and modified here and there, and whoop, there you are. Yes, they are in space...but, not having developed it in house, they aren’t “there” yet.
As far as passing us...it’ll be awhile before they are at where we are today. When they hit where we are now, we’ll be farther along...unless we further cripple NASA.
We fund China’s military and space program.
America supplies the money.
Because we are rubes, about trade.