I honestly don't know why people automatically hate on everything made in china. Their AKs are highly coveted, and not just because of relative scarcity.
It goes back quite awhile with the sometimes true thought that their manufacturing and quality control are not as important as getting product out. Meaning, they made stuff cheap and it showed. But do think they have massively improved quality control over the years in most items. Plus them still practicing a version of the Marxist-Leninist style of governing, makes China easy targets for all kinds of anger, either justified or not.
As for the original topic of this thread, something doesn't seem right. The pistol could've been destroyed by faulty chinese ammo, or not. Without any real proof, it's just a interesting story for the internets to digest. At least no one was seriously hurt whatever happened.