Chen Xin's ability, of course, has no range restriction. As long as he wants, he can upgrade anything.
For the system, as long as there are survival points and a physical reference, nothing is a problem; there are no restrictions.
Chen Xin can even regard the entire Flame Country or even the entire Blue Star as a whole and proceed to upgrade it, as long as he has enough survival points.
Of course, Chen Xin doesn't have that many survival points. He would have to scour all the shelters in Flame Country to achieve that; otherwise, it's mere fantasy.
If he ever reached that point, choosing between the Cosmic Emperor and the Death Star Fortress would be a tough decision for Chen Xin.
Luckily, Chen Xin doesn't need to consider these things now, nor does he need to make choices. What he needs to consider now is whether to accept the country's proposal for cooperation.