Comparing costs between Western and Chinese automakers in China shows that subsidies matter, but they’re only part of the story. Chinese carmakers benefit from fundamentally lower cost structures, driven by tighter control over their supply chains and a stronger focus on the China market—both of which significantly reduce operating costs. They also make more aggressive use of supplier-backed financing
Also may have stolen rnd instead of doing it themselves. May have resources locally not sources abroad, might have slightly different labour laws that allow more productivity without compensation, maybe lower wages? Could be a combination of lots of reasons.