Equally lets not forget that china sees this as a key strategic necessity for a forced reunification attempt on taiwan, both for national security and the ability to produce chips solo.
Two things can be true. They can have great engineers and government money. Theyre not mutually exclusive.
Governments all over the world try to support their economies. It's not just a Chinese thing. How much does the western world invest in LLMs? But for some reason, we only call it "cheating" when China does it and is more successful than us.