Not only x86 chips, they are going in fairly hard on Risc V and Loongarch (MIPS/Risc V inspired ISA). Risc V is still growing trying to catch up to ARM, while Loongarch LA664/LA864 chips are much closer to x86 performance than other options. They still are many years behind but not as far as you would expect.

GPU's are still a fair way behind with Moore Threads S80 being a better example of their high end. I suspect they have some major driver issues because they current benchmark far below what that silicon should be able to do. https://en.mthreads.com/product/S80

There is also the pressure to have them innovate on older process nodes so they can make this stuff domestically. For instance Huawei is doing what they call 'logic folding' which is basically just stacking dies in a way that ends up reducing the overall size of chip features. Not sure how it addresses thermals but it is a cool idea.

Sorry this article is a bit of LLM rubbish but you get the point - https://www.geeky-gadgets.com/huawei-logic-folding-moores-la...

China is hungry and that is driving them to take these moon shots, they may just make it.