Note there are competent RISC-V architectures in China which might already be faster at emulating x86 than the KX-7000 is at running it directly.
Zhaoxin is China's answer to "what if we need a drop-in x86 replacement immediately?" It does not represent the frontier of CPU development in the country.
Exactly this. China isn't going to be doing HPC on these, or building domestic clouds, or wooing gamers. This is a strategic project so Chinese users can continue to access the x86 ecosystem regardless of 'supply chain issues'.[1][2] And much of that ecosystem can get by with a fraction of the compute of the average gamer, it's just fine that it hits mediocre performance numbers, for now.
[1] And, sure, some national pride. No harm in that. [2] No, "emulators!" is not the only answer.