It's also more or less the same move that they've been using pretty much since the WTO entry: take on foreign manufacturing, copy the products, sell knockoffs as their own, build new products on top of the that knowledge.
Jensen came across as incredibly defensive and intentionally close-minded, shows that even billionaires suffer from "a man can't understand something if his paycheck depends on him not understanding it."
Your assertion is silly: did Tesla selling electric cars into China stop them from delivering their own industry? They were going to develop their domestic industry regardless.
We simply don't know the counterfactual, if they had unlimited access to Nvidia chips, how far ahead would their models be?
That's alright. It delays them at least.