The data kills your self ...
The sales of the chinese car "MG" is indeed soaring tremendously; the street situation video you brought slap your face hard. :)
There will be 2nm available on the market in year 2025.
https://appleinsider.com/articles/22/06/17/tsmc-announces-2nm-chip-production-will-start-by-2025
That mean the gap will be still 2 generations.
Surely China can always do that, but it will be always 1 or 2 generation behind if she pursue without right strategy.
The real problem is not about can or can't be done, but how China could be independent from US and becoming on par/close the gap with competitors SK, Taiwan, US VERY SOON.
China...
Maybe not be harder, although the EUV lihtography is called a marvel technology, but dont expect it can be solved in fast manner nor easy as reverse engineering as said above.
Not easy to reverse engineer EUV Lithography.
Even if can, the supply chain is the most challenging one. There are 100 thousand precision parts from 5000 vendors spread all over the world, mainly from US.