I hear this argument a lot. And for the average desktop computer, I totally agree with you.
But that's not the concern. The concern is cloud, AI, etc. Massive compute requirements. TSMC began mass production of a 22nm node nine years ago. It's going to require many, many times more power and cooling to operate at the same levels of performance as modern 7, 5, 4 and even 3nm node sizes. This is a truly massive disadvantage. And while China has proven they can produce chips using a 7nm node size, it is a dead end best-it-will-ever-get DUV process, not EUV. And the 7nm chips they've produced so far are very simple things like ASIC and a far cry from general purpose CPUs. And as far as I know, they can't even produce that at scale. And for reference, AMD was building 7nm CPU seven years ago.
The most important thing to remember is that China has reached a dead end. There's no smaller node sizes with DUV while the west will continue to drive down node sizes and power consumption while improving efficiency and performance. The next step for China took the collective world about 30 years to create (see: ASML) and China alone won't crack that for decade(s) by which time we will be producing node sizes unimaginably small to China. So not only are they far, far behind today it's actually going to get much, much worse for them in the next few years.