It's the inability for SMIC to obtain EUV lithography equipment for their sub-7nm process technologies from ASML that prevents China from getting into high-end semiconductors, not the domestic microarchitecture know-how.
Here is an interesting question: how long will it take China to catch up? I predict 10 years! The Chinese government sees a leading position in semi manufacture as being of extreme strategic importance. There are several reasons why I think China will succeed other than government strategy: the size of the Chinese market (already the biggest processor market in the world), the ease with which Taiwanese semi expertise can be brought to China (legally, salaries are just higher in Shanghai than in Taipei).
As long as the US has the world’s only reserve currency and as long as the EU economy - especially the productive bit in the North - is built on exporting to the all-powerful US consumer, the EU has very little leverage in its affairs with the US.
The final word has not been spoken. Construction of Nord Stream 2 has recently been restarted despite the US threatening with sanctions.
Only a fool would tie themselves to China as things stand right now.