Your usage of the word subsidize is strange. I might as easily say that I subsidize my local grocery store. Except that a much more natural way to say the same thing is that I buy food there.
We have a trade deficit with China because they make so many affordable products that Americans want to buy.
Of course much of that wealth ends up in the hands of the Chinese government, just as the US taxes corporations here. I would probably describe our government's use of most of those funds as "ill-conceived." We certainly wage more wars than China.
Why so belligerent?