Yeah, this is the Chinese government's go-to plan at this point: fund copycat industries, subsidize the crap out of them, and use those subsidies until there's a global monopoly share and a field of dead competitors that couldn't match the subsidies.
Cell phones, major appliance manufacturing, solar panels... If we didn't learn the lesson before EVs, that's on us.
That said, not a lot of sympathy for the US auto companies' complacency. They've known EVs were the future for years, and there's no reason we shouldn't have options at every price point.