The US government has also grossly subsidized many industries. Tesla literally wouldn't exist without subsidies. However, the whole premise behind capitalism and markets was that this system was inherently more efficient than state planning. Now we see that narrative is false because China's planned system is winning across the board.
And that's the beauty of a planned system, you don't have to focus solely on short term profit there. If Chinese government sees this tech as foundational, which they do, they can just keep pouring money into it because it provides general benefits for the country.
This is exactly what happened with high speed rail incidentally. People in the west kept talking about how unprofitable it is, while China understood that creating this infrastructure would create a huge economic boost for the country by allowing goods and people to move more easily. Sure enough, China continued to invest in high speed rail, and now a lot of regions that used to be hard to get to are wired into the economy, and China is seeing substantial development in these regions.
