Not quite. The UK govt has a rolling target of how many EVs are sold as a proportion of all vehicles. The manufacturers get "fined" £15k per ICE car sold over the target. The targets are ramping up rapidly - 22% in 2024, 28% in 2025, 33% in 2026, etc, reaching 80% (AFIAK, keeps changing) in 2030. There's various trading mechanisms in place and what not so it's a bit more complicated than this.

So it's far better to sell EV below cost (Chinese or not) to get more sold than have to a pay £15k for an ICE car.

The Chinese manufacturers are arguably at double advantage here as they have more BEV to sell so it's far easier for them meet the targets, and they can 'sell' the excess to the Western manufacturers (and further subsidise their EVs!).

I'm not personally against it, I got a brand new EV on a lease recently for close to free after all the tax advantages, and it's not like the Western manufacturers didn't have time to prepare...?