To be fair the state of the art is 3mn as of now (eg iPhone 15 releasing next week or so.) But 7mn is pretty darn close.
For example, if we never got down to where we are now, we likely wouldn't have LLMs or viable real-time ray tracing or the ability to run various types of photo improvement algorithms on your iPhone to make all your pics look good. Those require significant processing and it wouldn't have been achievable if technology here just stopped a decade ago.
If we had stopped CPU progress 25 years ago we would have never gotten smart phones at all.
It is hard to know what will be possible in a decade with all the additional compute resources we get from moving down more nodes. But I do expect there to be a lot.
Blockading a small country that doesn't have a lot of resources can be very effective, even long-term, look at Cuba or Gaza Strip, but blockading China just slows them down temporarily until they overcome this challenge.
The main issue China has is just that they have a population decline problem which will continue to get worse over the next 50 years. That to me is the only thing that truly threatens China long-term and will sap its innovation and productivity.
It can be (and likely will be - just see at corresponding market figures) mitigated by ubiquitous automation and robotics.
cough Industrial Revolution cough Black Death cough