Corporations exist at a state's sufferance. If a Chinese company wants to create an American subsidiary that's going to predictably going to break the law, the state can (and, in fact, is probably legally obligated to) just not grant them a business license.

Or, after the fact, when the state realizes what is happening, they can dissolve the subsidiary's business license—just like with the DMCA, where the state can require local DNS resolvers to not resolve the domains of foreign companies found to be breaking local laws.