They did this with EVERYTHING. The costs of manufacturing are roughly 1/3rd labor, 1/3rd raw materials, and 1/3rd power. China subsidizes power and raw material

They did this with EVERYTHING. The costs of manufacturing are roughly 1/3rd labor, 1/3rd raw materials, and 1/3rd power. China subsidizes power and raw materials (through various means). If it weren't for that, Chinese stuff would be about 70% the cost of US stuff (assuming 10% the wages, equal productivity, and the same material and labor costs). Subsidizing stationary inputs (like roads, power, and pollution sinks) or stuff that's expensive to move (steel, coal, trained workers) is a way to force a country to industrialize. Subsidizing easily exported inputs (like rare earths) is less effective, as it just ends up in your competitors' final products.