Another (possibly bigger) reason cars are cheaper in China is because their government subsidizes the heck out of BYD and the likes. It would be like if Tesla didn’t have to pay anything to build their factories.
The federal tax credit in the US is much higher than the Chinese equivalent it appears. But the factory and R&D subsidies are much harder to compute.
We subsidize our auto industry too.
Imagine if we let in the Chinese EVs stacked with the tax credit, you could get a car for 5000$ or less.