> And if they don't want our self-driving cars I don't want theirs.

Not about this particular example but we know that’s not how it works; people buy whatever is cheap so not wanting something on invidual level works if you are strong and willing to spend 2-3-4-n x the money, but in general people will just buy. In the 80s many people said it about Japanese cars and yet everyone bought them eventually because cheap and good. Even in China, where many people have the old hate against Japan (far stronger than your feelings most likely as the Japenese did horrible things here), they still drive Toyota etc and they see the issue with that but it’s cheaper than German and better than Chinese, so what can you do.

I don't see how it silly. Autonomous cars are going to be a game of information. I don't think it is in any nations interest to give that information away. If autonomous cars, artificial intelligence or any other technology is going to be as big as people say (or even just as big as computers, software and information is these days) then it's going to be a large part of the future wealth of a nation. Just like oil or even regular car manufacturing is today.

Also I think you severely overestimate the subtlety of Chinese propaganda.