Rumor is that they had trouble selling it against A100 due to worse price to performance and worse software integration. But the US sanction has now created a huge market for it.
Domestic fabrication is still at the 28nm phase at most.
That said, the Ascend series a fairly massive leap, as it means domestic EDA capabilities have grown massively in China.
That said, I remember they had a massive Design labs in both SV and Delhi+Bangalore that poached from the Samsung, Nvidia, and Intel labs in town before they were kicked out of US+India so idk how much design was done domestically in China.
Allegedly SMIC has both 14nm and 7nm fabs as of last year.
Not to say that Chinese vendors won't eventually crack that nut, but it'll take several (3-7) years. Also, domestic design capacity seems to be somewhat lacking (though rapidly changing)
The most cutting edge domestic lithography tool China has is SMEE's 28nm one - that's still a MASSIVE accomplishment, but still significantly far from 20/16/14/7nm processes.
Even Russia had domestic capabilities for 28nm fabrication at scale in the 2010s.
That said, for most military use cases, this is more than enough.
Edit: this is wrong. They have design capabilities but domestic fabrication is limited to 90nm.