Will China dominate the world of semiconductors?

Absolutely.

The US semiconductor industry will go the way of the US textiles industry, the US paper industry, the US electronics industry, the US tool industry, the US ship-building industry, the US steel industry, the US building materials industry, etc, and all the other former US manufacturing industries that are now firmly in China's hands.

If they play by the same rules as everyone else, no. If they don’t? Also no.