If it's build on the VIA intellectual property, VIA bought Cyrix and have access to some of the licensing around x86. It will be interesting to see if they try to push these in the US and if they're legally allowed to. (They probably are).

Unless they were somehow subsidized by the Chinese government I don't understand what market there would be for a slow, undocumented, probably buggy, power-hungry chip like this

Do not underestimate the power of the word 'cheap', especially in the enterprise where some division buys the hardware for the other divisions and is only reviewed on cost.