The whole thing with being equivalent to a CPU that 4 years old, is that its old enough that you could pickup a server thats running with it for a pretty good price, used. Which means that fact would need to be at least be somewhat reflected in your new pricing. While this is great for China and their quest for self sufficiency, it makes for a hard sell to anyone else in the world. Honestly it even makes it a hard sale for anyone in China that can get their hands on used servers, which are being sent there by the tons daily anyway. Regardless, it's a good achievement, just not necessarily good enough to get amazing sales figures on.
The worry is not much the used CPU's price, Loongson can easily sell for cheaper since they use SMIC cache & wafers, without taxes, and no shipment costs, and still just using spammeable DUV.
The concern is more that Intel will sell for pennies their 10nm+++++ in the coming years, this is common knowledge, as Intel is forced to profit up to invest back into their EUV nodes, currently on minimal production.
Loongson is mostly a research team, that the Chinese goverment can easily scale up into mass production if they see fit, but it is just not worth to do that if they cannot be competitive with Raptor's Lake or Bartlett's Lake, or their server equivalents, yet. But this is the closest they got ever to that goal, so it is another important milestone for them.