They are exporting more petrol vehicles than ever before.
For the Chinese, producing a car is like producing a hammer: only the production costs count.
Driving a polluting car in China seems to be getting more expensive. That's why they do it less.
Driving a polluting car in, say, the US, is not getting more expensive, so they import those cars.
Second, the local air quality is related to local policy: if other countries want to improve their local air quality, local policies are needed.
China seems to be working in that direction, although they are by far not yet there.