To reach these high core counts (relative to China's current manufacturing capabilities), Loongson is using a quad-chiplet layout interlinked with its Loongson Coherent Link (LoongLink) technology to achieve a 64-core configuration. LoongLink is Loongson's equivalent to Intel's mesh interconnect, Nvidia's NVLink, and AMD's Infinity Fabric.
This is the strategy AMD used with their Epyc server chips to take marketshare from Intel in the server market, and it works.
AMD also used it for Threadripper, and AMD has taken the HPC market completely away from Intel.
So this is absolutely an excellent strategy to compensate for being behind on manufacturing process.