They have had that reputation for a long time and it persists. Assuming companies like BYD do things correctly, they'll come from the bottom up and improve quality as they go while working to keep their volume position. Pretty much all the major automakers should be terrified, as China is likely to have two or three juggernaut auto companies, they'll be permanently cash loaded by their gigantic domestic market, and they'll be able to use that to forever assault foreign markets (it's the same thing US tech companies do, using the US as the springboard to conquer the world).

We'll see this pattern repeat with high tier engineering products going forward. Airbus and Boeing will be brutally mauled by China in a similar fashion, as nearly all domestic China planes switch over to being exclusively Chinese planes for nationalistic reasons (it'll cut Airbus and Boeing in half at a minimum). And China will use that scale and capability gain to conquer other markets like India et al.