Huawei Teardown Shows 7nm Chip in Blow to US Sanctions

Basically yeah, China managed to produce domestic 7nm chips in commercial volumes and people thought it would take much longer for that to happen.

As far as any of us know, Mainland China has no EUV capability, so challenging fabrication companies like TSMC and Samsung at their absolute bleeding edge isn't really possible for now. This likely represents close to the limit of what SMIC can do with just DUV machines, but as OP said, it's a testament to the fact that the US is not capable of cutting off their access to high-end semiconductors. Eventually, probably sooner than we expect, they'll also close the gap on lithography. It really is just a matter of time.