Yes. Thery may do badly, but this isn't going to be much of a problem for China for ages. They are unlikely to do that badly though - among 2 billion people there will be plenty of good people.
Their much bigger problem though is their lack of access to cutting edge semi-conductor manufacturing technology. I imagine they are on this though, probably through industrial espionage (invading Taiwan would help, but they will face similar issues for acccess to tech long term unless they also get access to ASML work I think).