their success is an outcome of a brutal competition in the past, orchestrated by the CCP. They're now obviously no longer "helped" by the CCP, but this company (and other companies, which might've died already) were definitely recipients of state support in the early days.
The current crop of ICE car manufacturers in the west did not see it coming, and assumed they'd always have a dominant position. They deserve to lose. However, in the event of a war, this sort of loss would've had huge impact on the industrial capacity of the US, and might directly lead to a loss.
The loss of industrial capacity for ship building in the US is already evident. Back in WW2, it's due to the US's shipbuilding (look up liberty ships) that allowed the logistics to sustain the war and ultimately win. It's due to having the car factories being available to convert to tank factories, that allowed the US to produce the masses of tanks and trucks and such required to sustain the war.
So if a WW2 scenario happens today, the US will not have such options any more. With the exception of perhaps, air power. But surely, china is not only encroaching but likely will succeed in having a domestic plane manufacturing base.
Sanctions, and export restrictions will not help. Tarriffs is only going to make cheap goods more expensive, but will not bring the manufacturing back.