China can make mid - and low-end chips, not high-end chips.
At present, China cannot buy high-end lithography machines, so it cannot make high-end chips. The highest lithography machine we can produce is the 28-nanometer lithography machine of Shanghai Microelectronics, which is expected to be put into production by the end of the year. Generally speaking, 55 nm or more is a low-end lithography machine, 14-55 nm is a mid-end lithography machine, and 14 nm or more is a high-end lithography machine. China can make middle and low end chips through the middle and low end lithography mechanism, but advanced chips such as mobile phone chips cannot be manufactured. Of course, we can design and then hire people to manufacture, such as Huawei's Kirin chip.