The country I'd point to for inspiration on this is actually Israel, a country even less deserving of praise than China in my opinion, but hey, good ideas can come from bad places. There's tight integration between the Israeli private cybersecurity sector and the Israeli military. Israel had a very prosperous tech industry, at least until the present constitutional crisis. The IDF trains cyber soldiers for four years, then the private sector hires them.
You can't solve the cyber warfare problem without the military. Capitalism is structurally incapable of doing it alone, any more than Detroit's manufacturing plants could've defeated Japan without the military nationalizing them. Cyber policies and products without the military's direct involvement is like guns without bullets.