They have better technology. Better batteries, innovative drive trains, cheaper chassis, better product market fit. This is supposed to be a pro technology forum.
that is the problem they cannot deal with the truth if the car is better you have to recognize that regardless of where it is made. The Chinese absolutely dominate on batteries they also have unique IP on different types of batteries, they are cheaper, better charging cycles, the best energy density at scale. They are also competing in the luxury watches category which I am have a keen interest in I have a few collection that I have acquired apart from the ones I got from my fathers estate, the quality and cut of the sapphire they use on the watches, the jewels they use is getting better, the hairspring, the gear each category is getting better. I am telling you that the Chinese watch industry can now produce a better quality watch than the rolex detona including a better movement they only thing that people can argue against now is that they can't write the word "ROLEX" on it and that they don't have "Heritage" ( which they don't because they cannot go back in time, but I'll tell you want they can do they can go forward which is better), every measurable quality like finishing and polish everything better in every way physically other things like marketing and thing that exist in the customers mind they can't control.
That's not exactly how it happened. Sony of Japan was the first to successfully commercialize lithium ion batteries, most commonly used in EVs, in the early 1990's; quickly followed by South Korea -- most or 3/4 of all active lithium ion battery patents come from either Japan or South Korea.
China was very late to the EV battery game and LFP was more or less their only choice, which was deemed inferior for EVs due to its low energy density, but whose core patents were all about to expire -- ie, great for exports. They are effectively patent-free now.
In short, the Chinese gov't essentially forced all key EV battery industry leaders to waive their IPR to access China's local market; then effectively banned them and forced their customers, EV OEMs, to switch to local Chinese battery suppliers, who were still learning to make batteries under MIIT's Regulation on Power Standard since 2015/2016 (announced/enforced). That's essentially how China came to corner the battery supply-chain and scale up/commoditize their production at the expensive of everyone else past 10 years.