In 2016,China surpassed the US in two critical supercomputer metrics. It currently holds the top spots for the fastest supercomputers in the world and it has more supercomputers in the top 500 list than any other country. It has accomplished this using its own domestic chip technology and its own operating software. It is expecting to build on that success by having the worlds first exascale computer online by 2020.
China has no intention of stopping there. It has just released an outline of its plan to be the world leader in AI by 2025. Chinese leaders recognize that AI plays an increasingly critical role in economic and military competitiveness. The US has its own plan for AI leadership but the current governing philosophy in the US isn't well suited to match the kind of moon shot effort that China is geared up for.
https://www.google.com/amp/s/www.theverge.com/platform/amp/2016/6/20/11975356/chinese-supercomputer-worlds-fastes-taihulight
https://www.google.com/amp/s/www.theverge.com/platform/amp/2017/1/19/14321832/china-exascale-supercomputer-prototype-2017