This was inevitable as the 2010's were very beneficial to their local tech industry. With the mandate to do as much tech internally there was a mother of all booms to take advantage of.

“Even a pig can fly if it stands at the fengkou, as long as the wind is strong.” Xiaomi’s CEO Lei Jun. Fengkou = Air Vent

Essentially, even if the business wasn't that great, there was still the possibility to be successful.

But as Warren buffet said "Only when the tide goes out do you discover who's been swimming naked.". The wind has stopped, the tide has gone out and now we are seeing the blow back of this. This can be a good thing long term as it can show what has a viable long term future but it hurts a lot in the interim.