It does if it meant everyone else went out of business and became dependent then on China

that's like saying that apple should sell the iphone for $10 to capture the market. meanwhile apple does the opposite

The chinese are not entering a saturated market here, they are building it and apparently dominating it by creating the best value

They did the same with PV panels, their plan was to make PV cheap for china, and in the process they became supercheap for the rest of the world too.