> They could ramp up low quality development faster and thus achieving higher growth rates in the short term. But they are focusing on long term strategic goals.

Mathematically there can be only rate of growth at any point in time.

> But they are focusing on long term strategic goals.

You can say the same about US.

> There are still some major hurdles(EUV alternatives, high end AI accelerators, software stack) but if the current speed of development is any indication, then these too will be overcome and probably much faster than many anticipate.

It can go this or that way. With access to Western tech cut off, rate of pilfering from the West will also decrease, so that needs to be factored in too.