They have both. They are good at many areas but not in semiconductor industry, yet. China heavily depends on chip import from US.
A few months ago, the state-owned ZTE, one of the largest tele-communication devices manufacturing company, was grounded by US government for a ban of chip import for 7 years. And they claim their business basically was dying in a month once the inventory ran out. Later our government lifted the ban as a trade war deal.
So you can tell they lack some technology, especially in semiconductors.
On the face of it, it makes sense. They may not have had any incentive to invest in that tech or manufacturing, but it doesn't mean that they don't have the capability. If you recall, many countries got nuclear capabilities despite US ban on such tech transfer or export.