They made it free just like any other startup makes a free tier to obtain market share.
YouTube got to where it is by making intentional moves to be the only game in town. They aren’t the most user-hostile platform by any means, but they have been coasting on the network effects of backlogged content for close to a decade now. Even if a competitor could deal with network and storage costs, and somehow manage to attract a network of uploaders, the platform would be 20 years behind, and there’s certain content (e.g. older content) that you simply wouldn’t ever be able to find there in any appreciable quantity.
Drug dealers invented this business model, they would give heroin to young children for free and then once hooked hike the prices or force them to turn tricks to pay for their habit. It’s effective but not very admirable to say the least.
I'm sure the US government will be appreciative of a Chinese car manufacturer selling free cars in the US to obtain market share, and there definitely won't be calls of "dumping", no siree.