China has a microprocessor supply chain. They bought around 500 billion worth last year and are working on making their own.

Communist USSR reached space first. And China is state capitalist anyways.

Why do you assume that Xi will be micromanaging every decision related to space? He's a human, not a robot. He just signs off on the major things and everything else is delegated to other people.

People have been clamoring about Chinese revolution, collapse, whatever for decades now. Never materialized.