Taiwan, not PRC. Mainland China isn’t capable of making CPUs and GPUs whith the performance and low power draw needed for a portable console in the volumes necessary. They brute-forced their way into a 7nm process, but it’s expensive and low yields, so they’re using it only for crypto mining ASICs and Huawei phones.
To make a console like the Steam Deck, they would need an AMD64 chip on 5nm. Granted, Zhaoxin does have a licence for X86 architecture (inherited from Via, who got it when they bought Cirix), but they’re still far from being able to make those in 7 or 5nm.
Meanwhile, TSMC in Taiwain is already shipping 3nm chips for Apple and soon for AMD too.
Unless China figures out Extreme UV, like in the ASML machines, or direct stamping, like in recently announced Canon machines, they won’t be competitive with Intel, TSMC or Samsung anytime soon.