This tech doesn't seem particularly difficult to achieve, the US demo'd something similar from ~5 years ago in an air dropable format:
So we really have no reason to doubt that China can do the same thing. It most likely uses decentralized path planning with inter-drone communication using radio to share telemetry and avoiding collision.
With the way it's going a large format MLRS can deliver hundreds of even thousands of smart UAV munitions at a time, with autonomous targetting and strike capabilities defense against such tactics will be very difficult.
