"TMSC shipped N7 in volume in 2018" (with Apple A12 etc.) So, if volumes materialize from SMIC (right now it's one chip for one Huawei 'flagship') SMIC still is about 5 years behind.
A quick look US public intel assessments SMIC e.g. finds this one from a think tank in Jan 2021:
SMIC, China’s leading competitor in the foundry segment, remains four or five years behind TSMC in technology, despite almost two decades of investment.
So, no, overall this piece of (7nm) news hasn't changed much if anything. As noted extensively in another answer, N7 was the las DUV process from TMSC, the newer ones use EUV, which insofar SMIC doesn't have access to.
(I don't want to get into that kind of flame war here, but for comparison, Apple's current flagships use their A16 chip, made in 4- or 5-nm process, depending whom you ask. I don't see any indication SMIC or Huawei has bridged this gap.)
For the more geeky inclined, I've not seen a more detailed analysis of SMIC's "N+2" process, which is what this Huawei chip was made in, but there is one for SMIC's prototype N+1 process disclosed last year, when they showcased the first "7nm" samples:
Recent findings from TechInsights prove that Fin Pitch (FP), Contacted Poly Pitch (CPP) and Metal 2 Pitch (M2P) sizes of SMIC’s N+1 are larger (FP) or the same as TSMC’s N10 fabrication process, which might point to the fact that this is a TSMC's N10-like technology with relaxed rules, but it is not. Extensive Design Technology Co-Optimization (DTCO) features and high-density logic libraries enable a logic transistor density of 89 million transistors per square millimeter (89MT/mm^2), which is comparable to what TSMC’s N7 and Intel’s 10nm offer, making N+1 a viable 7nm-class alternative (at least for logic, as scaling SRAM is tricky).
Apparently, according to that piece, the first SMIC chips made in that tech went to "MinerVa Semiconductor's Bitcoin mining chip since July 2021 without disclosing it."
As for SMIC's N+2, if anything the hype was greater in Sep 2022, when it was even called '5nm' by some.
SMIC briefly mentioned its N+2 technology in 2020. While this one is yet another evolutionary step from its 14nm node, China's analysts seem to label it a '5nm-class' technology since it is one step ahead of N+1, considered a '7nm-class' node. However, DUV tools with 193nm ArF laser have known limitations regarding resolution, and intensive usage of multi-patterning to lower critical dimensions of circuits affects yields.
[...] it is very intriguing to see a [Chinese] state media revealing SMIC's '5nm' technology in its rather detailed report about SMIC's mass production of 14nm chips [...] according to Global Times, which brought up 'independent' experts who spoke about N+1 (7nm-class) and N+2 (5nm-class) fabrication processes.
So, yeah, this is actually a bit underwhelming compared to the '5nm' hype for N+2 by Chinese media last year.
(Another source mentions that the MinerVa chips were shipped in July 2022, so there might a typo in the quote that regard, I'm not sure. There might some confusion between when the chips were shipped and when a Western [public] dissection of them happened. SMIC's N+1 process was taped out (gave 'noncommercial' samples) back in 2020 actually so even 2021 is a plausible date for shipping some volume to some customer who didn't wish for publicity, like that Bitcoin miner. FWTW, according to SMIC executives "trial mass-production" for N+1 began in April 2021.)
One of the more obscure points discussed by Chinese vloggers is that this chip (Kirin 9000S) is apparently [claimed to be] free of Arm IP in its large cores. This may or may not be the reason why devices with it insofar are China-only. Huawei may be afraid of a [patent infringement etc.] lawsuit if the sold the 9000S chip elsewhere or they may be simply testing the product in a friendly market before attempting any exports. As for energy efficiency, generally the 9000S doesn't seem to best the Kirin 9000 (used in other Huawei devices) that uses licensed Arm cores. (BTW, Huawei released a "Pro+" version of this Mate device this week. Again "with no prior advertisement" according to Reuters. Insofar it's not too clear it how differs from the "Pro" besides RAM & storage.)
One side that did declare itself surprised was South Korea, and Hynix in particular. Not because of the SMIC tech, but because their own Hynix memory chips (both RAM and NAND) apparently are found in the Mate 60 Pro, despite Hynix officially saying they don't do business with Huawei anymore [owing to US sanctions]. Speculation was that Huawei either used old stocks of Hynix chips they had or bought them indirectly.
And one other point is that the new Mate 60 phones are apparently 5G.... even though Huawei publicly denied in early August they were planning to release such phones. A lot of the Western commentary thus was on this angle (5G) as a/the surprise.