> How's the CCP financing the subsidies?

CCP is as a matter of fact the largest VC in China.

Interesting trivia: BOE was considered the most successful example of municipal government VC by Hefei and Chengdu. Hefei bet on both plasma display and LCD, only BOE survived.

Their currency doesn't float on the market. Strict capital controls are a hidden tax on exports. Imports are then tariff-ed to balance their sheet. It's an alternative taxation method if you cannot establish a compliant citizenry around your tax system.

SOE profits are used as slush fund.