Regarding the most advanced artificial intelligence models, China still lags behind the USA. And despite the great tech advancement in China, it is still facing problems with both factors combined; Electronic chips and capital. While private ِchineese investors don't have access to big financement to compete with american companies, the problem with electronic chips won't reach an end as long Taiwan is still in disagreement with Beijing.
I guess that's why China is deeply interested in "conquering" (invading) Taiwan. So it can get the world's biggest manufacturer of microprocessors for its own convenience. Only then, China will be able to achieve true technological superiority.
Either way, I have read that China is developing its own chips with Huawei. Not as powerful as US counterparts, but better something than nothing. Unlike the US, China has one of the largest reserves of rare Earth metals. It can use that as "leverage" to get what it wants. We've seen how China used this "card" previously when Trump imposed additional tariffs in "Liberation Day". China has all the cards to win. It's even helping Russia rise from the ground up. The US made this monster, and now it must learn to live with it. We'll see what happens in the future.