Chinese already start making DUV which can do the lower end 7nm. They are winning. Once that 7nm and up market cornered by Chinese, AMD Intel and TSMC and Samsung will have to burn thru bleeding edge depreciation faster perhaps from 7yr down to just 18mths. The CPU they generated will be incredibly expensive. Meanwhile Chinese just keep minting the AI cheaply and more efficiently and inching upwards towards 1.4nm.
They can do 7nm. But they use multiple patterning(printing the same pattern multiple times to get to 7nm), which is expensive. So it's not comparable on cost to western single-patterning 7nm, and of course not to the leading edge on cost/size/power.