VC money is used to scale up, cut costs with scale, capture markets, and then usually prices go up later depending on the economics.

The Chinese state is basically just acting as a big VC fund for Chinese manufacturing industries. A VC fund with a sovereign currency and the ability to sustain burn-mode for decades.

It doesn’t always work. There are some absurd examples of Chinese waste produced this way like “ghost cities.” But when it works it works, and at tremendous scale, and they can just dominate entire industries.