Unfortunately "incredibly behind" can be said about most countries of the world, many of which had electronics industries that have been destroyed during the nineties of the last century, but not about China.

China is already able to design and fabricate good enough CPUs, GPUs, DDR5 memories and flash memories.

For now, their fabrication costs are significantly higher than those of TSMC, Intel or Samsung, because they have to use expensive workarounds for not having access to EUV lithography.

Nonetheless, where the price does not matter much, like for supercomputers or military technology, China can afford to match or exceed the US capabilities with their internal production. With the high current prices for memories, the Chinese memory companies can obtain excellent profits with their products. Which is why the US congressmen John Moolenaar (R-MI) and George Whitesides (D-CA) have requested a ban on Chinese memories, presumably at the request of Micron, who is scared of the competition.

For now, China is even ahead of Japan, though hopefully that will change soon if the Japanese Rapidus meets its targets.

While Europe is the best in a few niche domains, it has a lot of things that cannot be done within its borders, so it is much less self-sufficient than China in electronics technology.