They can do this for low tech stuff. Like computer electronics, They can do that. Copy and then get subsidies from government, and they beat you with the cost.
But for IC Chip, You can't copy like that. The techniques have Patent to it. You need specialized machinery. You need material. When you go into the high tech, You need r&d on your technique and your material which you are using. It's bad because China does not respect your right to your own IP . The courts are not enforcing at all.
China thought that they can just copy wholesale. This is very wrong. They keep thinking that everything can be copied. Now the Europe and US start to wake up. Europe and US have thought that China is just lacking morale because they are 3rd world.
But with Winnie Xi, He wants to dominate the world.