China is already competitive in design with HiSilicon even if it doesn't meet all criteria just yet. You're going to see more and more companies in that class and quickly, and they are going to improve even more despite already being competitive on the world stage. Already too late for the US to do anything about that. I mean HiSilicon's revenue before COVID was the same as all of AMD.
Same with OSAT, already competitive worldwide not just domestically with a Chinese company (JCET). Too late for the US to do anything about this either. Will be easy for China to dominate this sector going forward.
As for SMIC (fabrication) it's not even a decade behind anymore. It's not neck and neck (US companies and ASML won't provide equipment which obviously limits <7nm volume production but that's not guaranteed to be a bottleneck when they're ramping up apparently for that in 2 years or less with indigenous equipment), but not a decade behind either. 14nm was volume manufactured in 2013 by leading-edge foundries so we're talking <8 years behind.
And in EDA China has Empyrean which is similarly less than a decade behind the leaders (Synopsys & Cadence). Hard for the US to do much more than it already has done yet Empyrean is still closing the gap quickly. Hard to measure in this field but I'd also say less than a decade behind here.
The only real serious gap here is in the Semicaps (equipment). The US dominates it (deposition, removal, cleaning, doping, etc.), with large single-segment monopolies by Japan (resist processing) and Netherlands (lithography). This is the area where China is struggling the most and I'd love to hear from people who know more about it. I've heard of the EUV problem potentially being solved as early as 2024, not sure if this is inside knowledge or can be backed up with publicly sourced info, but the other aspects of equipment are rarely talked about so would love to see more about that too.