This isn't exactly a surprise. The first ATi video card I owned was back in 1988, literally 36 years ago. For Chinese purposes, as long as it reliably displays 2D imagery, that's perfectly usable. Only gamers like us truly care about 3D performance and while we are legion, we're still not the majority. Lots of people just play 2D games on platforms like Facebook (or whatever China's equivalent is) and the vast majority of computers are engaged in digital commerce, something that has no use for 3D acceleration whatsoever.
If there's anything that we've learnt over the years, it's that, given time, anyone can accomplish anything, especially in Asia. Before my time, anything made in Japan was considered garbage, when I was a kid, anything made in Taiwan was considered garbage and twenty years ago, anything made in China was considered garbage.
Now, Japan is the world-leader in technological advancement, Taiwan is the world-leader in integrated circuit production and China is the world leader in the production of everything else. It's only a matter of time before China catches up and for those who bemoan this, the blame can be squarely put on the shoulders of greedy corporations that moved all of the manufacturing jobs overseas. This lined the pockets of the rich, left millions of Americans unemployed and literally handed American trade secrets to the Chinese. None of what has happened in the last twenty years should be considered a surprise to anyone.