America and the soviet union could both do it in the 1960s/1970s. China just didn't consider it a priority until SpaceX really started to take off. Same with all their rocket programs. China may not need to be #1 in everything, but still having 30 year hyperbolic rockets be the workhorse of the fleet while the more modern cryogenic long march family still struggles for launches is not a good situation to be in. It's clear that the higher ups didn't see orbital rockets as a crucial area of development, hence why they are lagging behind so badly as compared to everything else.
Space isn't that simple. Fairing size means that having a single large rocket launch a mega-payload is much easier than trying to split said payload into two parts and dock in orbit. And it's not just heavy lift, it's reusability of course. Good luck launching a medium lift rocket 3 times a week if you don't have at least a reusable first stage. China doesn't even have a F9 clone yet, or a FH clone, they are more than decade away from a Starship clone.