It's a tricky thing: company ABC invests $1B in some industry in some country - and then that country comes along and invests $2B in a national company so that national company can 'stay alive' ... and that money is used to undercut the foreign competitor.
A lot of trade happens in traditionally protected sectors - so it's a hairy thing when foreign entities come along.
Many countries - such as China - claim 'fair trade' (i.e. WTO) but specifically use all sorts of games to protect industries, just not obvious tactics like tariffs.
This issue is almost at the hart of 'free trade' because it's all about opening traditionally protected sectors - and local actors often won't like that and will lobby their governments to 'save them' in roundabout ways.
So it's a tricky thing.
If anything, this shows that the EU is basically inept when it comes to trade deals. They will get nowhere with anyone because there will always be some little state the size of a city that doesn't like something.
Imagine if all US states and major cities had to individually approve US trade deals!