It's hard to say, because the Chinese has unusual ways of operating society...
They sometimes prebuild infrastructure out of the wazoo -- creating side effects such as massive ghost cities.
Whereupon some of them actually succed later, having become heavily populated 5, 10 years later (albiet not all of them successfully gets heavily populated -- there are failed ghost cities and successful formerly-ghost cities).
This leads me to believe, what is interpreted by us as "fraud", is interpreted, handled, adjusted and recovered very differently over there...
Which means, in other words, this may be a practical vehicle design for a clean-slate street of a specific engineered city... But would work poorly in a random street of a long-established city... Once many flaws are perfected, including escalating automatic flashing/sirens when tall vehicles start approaching it, and must-follow the built-in traffic lights telling cars whether it's safe to proceed under the straddling bus (which might only be allowed at 'bus stops' or only during glacial slow motion -- to solve inability to see signage at side of streets or traffic lights up ahead).
Maybe, it could be just a low-speed peoplemover that runs at jogging speed at all times (still faster than a TTC streetcar sometimes).
Enough problems gets solved, it can be made to work on an engineered street where all the safety factors have been accomplished. But is it worthwhile and cheaper/better than alternatives? Doubtful -- but then again, the Chinese has rather interestingly unorthodox ways of operating their society.
It's like experimenting with "Hyperloop" (Which also incidentially, has its own
share of possible fraud) -- to build and try it, solve and 'perfect' it.
Arguably the first airplanes of the late 19th century and early 20th century were frauds from their perspective of the day -- and there were lots of lawsuits on failed airplanes -- before they began to really work and be reliable.
....And no, the LRT projects should not cancel their projects because of this highly experimental straddling vehicle. (A few anti-LRT residents in Hamilton been suggesting adopting this straddling bus as an excuse lately)