China already has a well developed DRAM industry, as DRAM is somewhat easier than logic, and can tolerate a much higher defect rate. The industry will figure this out.
Another point is I often see the money argument - like country X has more money, so they can afford to do more and better R&D, make more stuff.
This stuff comes out of factories, that need to be built, the machinery procured, engineers trained and hired.
If China capitalises on the big three focusing on data centre team, the big three might have a very hard time post bubble