I think people are overblown to focus strictly on nm issue.
US has tons of semiconductor companies only Qualcomm, Apple, Nvidia, has any product below 10nm . Intel stuck at 10nm.
What about the rest of them? especially Analog chips companies like Texas instrument, Linear, Maxim, Fairchild, Analog Device, Cypress they are still using Bipolar technology from 70s and will continue to use it now and in the future. Because analog chips needs to high power, fast. Going sub nm means dimnishing power supply and not fast enough and also small dimension means too easily breakdown. Triquint use GaAs special process. IGBT tech use fast, high power bipolar tech. Analog chips used for electric cars and electric catapult for carrier. China should concentrate on those.
China said its wants 80% self sufficient and 14nm/10nm is the last stop it needs EVER for digital chips and Analog chips it just needs to have the old process and tech.