The react's algorithm of detecting changes is based on rebuilding a Virtual DOM tree (i.e. recalculating all components) and comparing that tree to the previous one. It is done, as I understand, every time someone calls update() or similar method on a component.
So React won't cause performance issues only if you have few model variables or manually optimize the code by using immutable data structures (which have their own performance issues) and pure components.
For comparison, Vue detects changing by wrapping all model variables with proxies and linking them to UI components that use them. This has an advantage of not having to recalculate everything and disadvantage of having an overhead for using proxies and creating a dependency graph. Also, having to deal with proxies adds more pain for the programmer.
So React won't cause performance issues only if you have few model variables or manually optimize the code by using immutable data structures (which have their own performance issues) and pure components.
For comparison, Vue detects changing by wrapping all model variables with proxies and linking them to UI components that use them. This has an advantage of not having to recalculate everything and disadvantage of having an overhead for using proxies and creating a dependency graph. Also, having to deal with proxies adds more pain for the programmer.