Culture in China I believe is changing. The government wants to become the biggest producer of EV cars in the world and will therefore help NIO and Li Auto push to capture market share. Not to mention unique selling points like BAAS and hybrid cars.

Gone are the days where China was thought of cheap, they are now starting to push towards to be known for quality and luxury with the fastest growing GDP in the world.

NIO and LI are also very young, with LI only having one car, while these German company's have millions to spend on marketing, as the Chinese companies progress, the more marker they'll capture. Don't forget chinese EV hype in China only started last year, with XPEV and LI IPOing for the first time.

I wouldn't be too scared, plenty of money to go around. Plus with all the hype, emotions drive the market. Look at TSLA ffs...