The only meaningful hardware competition, meaning lower prices, will come from Chinese designed, Chinese manufactured parts. This is still a long ways out.
Is it inevitable? I think so. Before 2019 there wasn't an opportunity, now there is.
For software, Chinese universities, Alibaba, Tencent and Bytedace are already releasing models, training code and in rare cases datasets that are competitive with private offerings. CogVLM/CogAgent is one that I use. It's very promising.
I don't think we'll be legally prohibited from buying it but there will be zero English docs (see Allwinner and such). Maybe if you're lucky you'll get an uncommented code dump with a forked years-old version of PyTorch.
Is it inevitable? I think so. Before 2019 there wasn't an opportunity, now there is.
For software, Chinese universities, Alibaba, Tencent and Bytedace are already releasing models, training code and in rare cases datasets that are competitive with private offerings. CogVLM/CogAgent is one that I use. It's very promising.