Jensen Huang said this in his recent interview - that China has the best/most engineers, it has the chip making ability, it's a good thing they wanna build on a Nvidia stack - but if you push them they will build on an all Chinese stack - but the interviewer was being a numb head who kept parroting the propaganda of Western tech supremacy
Referring to the Dwarkesh interview clearly.
Jensen came across as incredibly defensive and intentionally close-minded, shows that even billionaires suffer from "a man can't understand something if his paycheck depends on him not understanding it."
Your assertion is silly: did Tesla selling electric cars into China stop them from delivering their own industry? They were going to develop their domestic industry regardless.
We simply don't know the counterfactual, if they had unlimited access to Nvidia chips, how far ahead would their models be?