China couldn't get a local ICE industry running no matter how many times it tried in the 70s, 80s and 90s. So they made a bet on the next technology.
They not only didn't have a local industry, they knew they couldn't make one and adjusted government policy.
They do actually make ICE cars and hybrids as well, it's not just electrics.
They do but they were not on par with foreign competitors.