The one urgently need 7nm production is Huawei. But SMIC won't do it without US approval even if it get a hold of those equipments and materials. Others not under sanction so they can use Samsung or TSMC.I think 7nm probably imminent.
Chinese people are greedy. This is all about first mover advantage.
Who gets to 7nm inside China first, grabs the entire market.
It does not matter what kind of equipment they used, sanctioned or not sanctioned. Who gets there first gets the entire China market for 7nm, sanctions are tomorrow's problem. Getting there first is today's problem.
They will make those workers and engineers work 48 hours per day to arrive there first.
Short term getting a hold of 7nm won't change China too much. Domestic tech ology is the key in changing China..