This was always China's desire, to basically build home grown tech's that could replace the ones they were using from the west. Unless the Chinese government mandates use of a single os (no android) in the domestic market then it won't work, if they do then they still don't have a viable os for the rest of the world because the rest of the world wants google, facebook and other apps which are banned in china. Facebook e.t.c. aren't going to make apps for a primarily domestic only phone where they are legally banned.