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Not really given that they're only a generation or two behind. People thought it would take a decade for China to get where they are now which only took a couple of years in practice.
In terms of cutting edge chip production they're well behind - think lithography.
Except that they're not https://archive.is/NrC6B
Interesting, but for the time being lets call it vaporware. It'll be really interesting if they actually make it work.
There's no reason why they can't make it work, and as the article explains it's simpler to make it work than ASML machines. The main complexity there comes from the fact that they need to be compact so ASML can ship them around the world. It's also always easier to do somethings that's been done before because you know which path to take. A lot of the difficulty of doing something for the firs time is that you inevitably have a lot of false starts while settling on a workable approach.
This is simply a matter of China allocating resources to the project till it works, and they have a lot of incentive to make it work. The only question is how long it will take, and given how rapidly China has been advancing in tech, I would bet it'll be much faster than people in the west anticipate.
Let's see, it'll certainly be an interesting development in any scenario.