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Technology
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Why did anyone think otherwise?
Because manufacturing super high tech chips is extremely hard and complicated and basically only a couple companies in the world can do it and they also depend on parts and technology from other companies all over the "western" world. China didnt have anything near this capability. It requires advanced research and knowhow on a million different technologies. So unless China does extensive industrial espionage(which they are trying to do), it's gonna take them like 10+ years to start producing anything relatively modern without needing any external parts/help.
In any case, it remains to be seen if it is actually 7nm. With a new cold war ramping up, China is trying to become self-reliant as much as possible.
Let me summarise your point above: "the yellow people are too stupid to make chips. If the are doing it, they must be stealing from smart Westerners."
Just how racist are you?
Except that's not his point. The US currently can't make this shit either.
Come on, Intel!!
I think they refer to the lithography machines, which are built by ASML in the Netherlands.