I got the impression you feel that's a bad thing, but I think it's just me. To me a rational governments would want its country to grow. And economic growth is accomplished by having new or growing businesses.

I agree Tesla was allowed as part of their benefit. I don't think Tesla benefits any of those Chinese automakers. No one wants a competitor. Sure, Tesla would help the crap companies die faster and force the rest to adapt to higher standards. But I think the real intention is for Chinese consumers to benefit from a superior and less polluting product. They are aggressively environmental nowadays afterall.