In no way does China have technical superiority. I read the whole article, and have worked in China before; that is not at all the takeaway here.
There are two key takeaways. China currently has "capacity superiority". This is not technical superiority, this is production superiority. However it's clear they also have an enormous problem, evidenced by how it discusses the brutal price wars that go on in China. That speaks to a weak consumer market despite the capacity they built, so, as the article says, many are turning to exports. Nowhere does this article discuss the financial health of the companies, but you can surmise that because of the brutal price wars those margins are very slim. So when they turn to exports on slim margins, they're effectively dumping. So all we're seeing here is China trying to own an entire category by overbuilding supply and dumping their products on other markets. This is not an uncommon story, and there are ways to deal with this.
The second is for anyone who is actually experienced in China, everything is orchestrated. The government, from the CCP in Beijing to local governments, have a heavy hand on these companies. If 8 VCs went to Europe or the US and travelled around looking at companies, they would get a clear picture. In China, nothing is clear. I don't for one second believe that the message these people got was not orchestrated well in advance to create the right impression. And it worked. The Chinese government wants people to believe they will only get advanced goods from China, and these VCs went along with it and bought it.
And why would they do that? Because it is taking effect. The problem with China's economic model is yes, they are quite efficient at making things. But the problem is they need someone to sell too; what good is it if you can make stuff if no one wnats to buy? And this is a big issue. US imports from China have fallen about 20% since 2022 ($536B in 2022 to around $462.6B in 2024), whereas every other country has gone up, notably South Korea, Mexico, Taiwan, Vietnam, Japan, etc. US supply chains are shifting away from China already so it's in China's interest to maintain thsi narrative that they're the only place to get these technologies. In 2022, the US market bought $582B worth of goods, with Japan being the next largest at $172B and South Korea at $162B. When the US drops by nearly $100B in trade, where is China going to find another market of that size to replace it?
So no, I read this very differently. This to me is typical China propaganda trying to emphasize China's critical role because they're struggling, not because they are strong, and the only reason they are the place to make these is because of slim margins and dumping practices, which never last forever.