It's a valid point. Less so specifically to China, and more so generally to all countries with national champions (e.g. South Korea).

In some sense, it's a zero sum game, where if your country don't scale or allow companies to scale, they find the next most favorable country. Or another country's companies succeed because of the additional support provided.

But subsidies and government support have always been the biggest fracas in international economic politics for centuries for the same reason.

To which I'd reiterate not_exactly__'s point: although business-harmful actions look like shooting yourself in the foot, hampering competition and supporting companies for extraneous reasons ultimately makes your economy and your companies less competitive globally.