Comment by immibis

They keep increasing and increasing the level of what they can produce. Within a couple of decades they will overtake TSMC, ASML, etc. If you're thinking about how the west still does all the design, they will produce their own computer architectures (Loongarch is outpacing RISC-V) and chips and operating systems. IIRC they're now able to make their own chips and chip-making equipment at a decade-old technology level and that's rapidly catching up.