China is still set up to keep climbing the technological value added chain (for example, if their airliner is completely independent of international components and competitive with Boeing and Airbus, they could sell well over thousands to partners like Iran and Russia, as well as domestic airlines). As long as that is still true, at a cost under their competition, it won’t collapse. It can’t collapse because much of the global consumer market depends on products at a certain price.
For example, China is outpacing traditional leading companies from Europe and the even some from the U.S. and expanding into their traditional markets. (Especially when it has access to cheaper commodities such as Russian oil as inputs)
Now, western and allied producers are going to gain a some market share as government carve out parts of the market for their own companies regardless of the costs, which is why China will have to expand into developing markets (with elites or regimes that are at risk of or currently under US sanctions) and help them be able to afford Chinese products, with support to industrialize and generate more revenue to spend. Many of these countries could have the capacity to absorb more Chinese exports if their economies were more productive, such as Iran.
China could also acquire large amounts of precious metals from these developing countries to provide another form of support for the value of the yuan, and increase its share of use in global trade. Many African countries have been trading resources for products, China would trade resources especially precious metals (that can be traded like a liquid internationally accepted currency) for industrialization and joint ventures, where African companies make some parts and Chinese companies still keep making other parts of a profit like a car.
China needs a pathway to maintain its status as the fastest growing major economy (or a close second to India if they start to get their act together) in the world to keep on attracting FDI and more tech, despite western restrictions. The Soviets, at their peak had an economy only 40% of the UD economy. China is currently at 70-75%. They have to keep getting closer to parity if it hopes to also achieve the politics benefits of parity; a major reserve currency to support domestic social welfare and jobs programs, and the ability to impose sanctions and elude other’s sanctions (for themselves and their partners).